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RBI Flags Post-July Rise in Digital Payment Frauds, Moves to Disrupt Networks

The deputy governor also cautioned that private digital currencies could threaten bank models.

Overview

  • T. Rabi Sankar said fraud incidence per transaction fell early in 2025 but has been rising again since July, prompting an RBI data probe into the causes.
  • The regulator is deploying digital detection tools, including a “mule hunter,” to identify conduit accounts and flush fraud proceeds.
  • FY25 figures show 13,516 card and internet fraud cases totaling Rs 520 crore, while overall reported frauds fell to 23,953 from over 36,000 the previous year.
  • Private banks accounted for nearly 60% of fraud cases by number, whereas public sector banks represented over 71% of fraud value as of end-FY25.
  • Sankar urged banks to modernize monolithic core systems and said risks from private digital currencies are conceptual yet potentially existential, with CBDC pilots continuing cautiously.