RBI: India’s central bank steps up fight against digital fraud
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims + Mains·
Why in news
The Reserve Bank of India (RBI) is proposing measures like a one-hour lag on account-to-account transactions and additional authentication to combat a surge in digital fraud.
Background
Digital fraud in India resulted in losses exceeding $25 billion in 2025. The RBI is considering a one-hour lag on account-to-account transactions and enhanced authentication for high-value payments.
Facts for Prelims
- FactDigital fraud losses in India exceeded $25 billion in 2025
- S&TRBI proposed measures include a one-hour lag on account-to-account transactions
- S&TRBI proposed additional authentication for high-value payments
For Mains
Q. Discuss the challenges in balancing seamless digital payment experiences with robust security measures to curb sophisticated cyber-fraud in India's evolving fintech ecosystem.
Dimensions to cover in your answer
- Security-UX Trade-off: Balancing friction-less payment experience with the necessity of multi-factor authentication for high-value transactions
- Regulatory Lag: The difficulty of creating static regulatory hurdles against rapidly evolving, sophisticated scam techniques
- Literacy Gap: The systemic risk posed by low digital literacy making users vulnerable to social engineering despite technical safeguards
Keywords: Digital Literacy · Cybersecurity · Fintech Regulation · Transaction Security · Financial Inclusion
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