Payment system operators to report fraud on RBI’s DAKSH from Jan 1

PTI, Dec 27, 2022, 10:24 AM IST

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In order to streamline reporting, enhance efficiency and automate the payments fraud management process, the RBI on Monday said the fraud reporting module will be migrated to DAKSH — the Reserve Bank’s advanced supervisory monitoring system — from January 1.

The RBI operationalised the Central Payments Fraud Information Registry (CPFIR) in March 2020 with reporting of payment frauds by scheduled commercial banks and non-bank Prepaid Payment Instrument (PPI) issuers.

“…entities shall commence reporting of payment frauds in DAKSH from this date (January 01, 2023),” the central bank said in a circular.

In addition to the existing bulk upload facility to report payment frauds, DAKSH provides additional functionalities, like a maker-checker facility, online screen-based reporting, an option for requesting additional information, the facility to issue alerts/ advisories, generation of dashboards and reports.

All RBI-authorised Payment System Operators (PSOs) / providers and payment system participants operating in India are required to report all payment frauds, including attempted incidents, irrespective of value, either reported by their customers or detected by the entities themselves, it added.

This reporting was earlier facilitated through Electronic Data Submission Portal (EDSP) and is being migrated to DAKSH.

After going live, payment fraud reporting in DAKSH effective January 01, 2023, entities shall not be able to report any payment frauds in EDSP, the central bank said.

The responsibility to submit the reported payment fraud transactions shall be of the issuer bank/PPI issuer/credit card issuing NBFCs, whose issued payment instrument has been used in the fraud,” the RBI said.