Archive · 7 Nov 2025
RBI to Enhance Digital Infrastructure to Combat Financial Frauds
The Reserve Bank of India's Deputy Governor, T Rabi Sankar, announced that the central bank is working on making digital systems stronger to stop people from being cheated when they send or receive money online.
He mentioned that even though digital systems are usually very good, sometimes people try to trick others, and this has started happening more recently.
The RBI is trying to fix this by improving these digital tools, similar to how they are making a new way to give loans digitally.
They also want to make it easier and cheaper to send money to other countries using new digital money like CBDC, but they are being very careful with this new digital currency because they don't want to accidentally make the banking system unstable.
He also advised banks to work together with new technology companies, called fintechs, instead of seeing them as competitors.
The RBI is expanding digital public infrastructure (DPI) to curb increasing financial transaction frauds.
Fraud incidents have started rising again since July, prompting the RBI to enhance digital systems.
DPI is planned to be extended to credit through the Unified Lending Interface (ULI) and to cross-border transactions.
The RBI is proceeding cautiously with the Central Bank Digital Currency (CBDC), keeping it in the pilot stage due to concerns about financial system stability.
The RBI Deputy Governor encouraged banks to partner with fintech firms, recognizing their innovative contributions.
- Who
- RBI Deputy Governor T Rabi Sankar
- What
- Stated that the RBI is expanding digital public infrastructure (DPI) to reduce financial fraud and discussed the cautious approach to Central Bank Digital Currency (CBDC).
- When
- Friday, November 7, 2025 (Published Date)
- Where
- State Bank of India (SBI) Banking and Economics Conclave 2025
- Why
- To address rising financial transaction fraud and to explain the RBI's strategy for technological advancement and system stability, including the development of DPI and CBDC.
Traditional Banks
Fintech Firms
Adoption of New Technologies like UPI
Traditional Banks
Banks did not initially foresee the full potential of UPI due to regulatory costs and the obligation to follow prudential processes, which also made them slower to appreciate its benefits compared to fintech players.
Fintech Firms
Fintech firms keenly appreciated and capitalized on the potential benefits of UPI due to their agility and lack of similar regulatory burdens.
Partnership with Fintechs
Traditional Banks
Banks are urged to treat fintechs as partners and build symbiotic strategic partnerships within the financial ecosystem.
Fintech Firms
Fintech firms are seen as innovators and partners that banks should collaborate with.
- Speaker
- RBI Deputy Governor T Rabi Sankar
- Event
- SBI Banking and Economics Conclave 2025
- Date
- Friday, November 7, 2025 (Published Date)
- Key Initiative
- Expanding Digital Public Infrastructure (DPI) to curb financial fraud.
- DPI Expansion Plans
- Extending to credit via Unified Lending Interface (ULI) and to cross-border transactions.
- Current Success Rate of Digital Infrastructure
- Over 90%
- Central Bank Digital Currency (CBDC) Status
- Pilot stage, with cautious approach due to potential impact on financial system stability.
- Potential Benefit of CBDC
- Lowering costs for cross-border remittances.
