Industry experts have endorsed the Reserve Bank's proposal to establish a digital payments intelligence platform. They believe it will help reduce fraud and increase consumer confidence.
On Friday, the RBI announced its plan to create a 'Digital Payments Intelligence Platform' that will utilise advanced technologies to mitigate the risks of payment fraud.
To achieve this goal, the central bank has formed a committee led by A P Hota, former MD and CEO of NPCI, to explore the different aspects of establishing a digital public infrastructure for the digital payments intelligence platform.
The committee is expected to deliver its recommendations within a two-month period.
In response to the RBI's proposal, Gaurav Jalan, the Founder and CEO of mPokket, expressed that the new regulatory measures represent a significant step forward in improving the security and trustworthiness of digital payments.
"By integrating advanced technologies to mitigate payment fraud risks, there's an opportunity to bolster public confidence in digital payment systems. This broader adoption and usage will empower India's youth by providing them with accessible and secure financial solutions...," Jalan said.
Ankit Ratan, Co-founder and CEO of Signzy said the RBI is proactively working to fortify digital trust within the financial ecosystem.
"This (proposed) platform will leverage advanced technologies like AI and machine learning to identify and mitigate fraud risks, ultimately leading to a safer digital payments environment," he said.
Ratan mentioned that this effort highlights the RBI's dedication to giving priority to safeguarding customers, which is also demonstrated in their ongoing work to establish regulations related to data security, cyber protection, and KYC processes.
Jyoti Bhandari, the CEO and Founder of Lovak Capital commented that the RBI plans to establish a committee to assess various aspects of the proposed platform in order to ensure consumer protection and enhance financial stability.
Regarding the RBI's choice to maintain the current interest rate, Sanjay Kumar Sinha, the founder and managing director of Chaitanya Projects Consultancy, suggested that the infrastructure sector and the overall economy might have anticipated a reduction.
"This move will foster the confidence of Infrastructure, EPC (engineering, procurement, and construction) and real estate companies primarily dependent on debt. Further, it indicates a stable economic environment, which can attract more private investment into infrastructure and continued support from the government," Sinha said.
Anil Gupta, President of CREDAI NCR-Bhiwadi Neemrana, said the status quo on interest rates is a positive development for the real estate sector.
This stability in interest rates will make homes more affordable for potential buyers, potentially elevating the housing market's upward trajectory. Additionally, Gupta added that lower borrowing costs could encourage industrial investment.
"A reduction in unsold inventories, coupled with stable interest rates, could help sustain buyer demand," Gupta added.
The RBI has increased its GDP growth forecast for the current financial year to 7.2 per cent from its previous estimate of 7 per cent.
According to Rajesh Sharma, the Managing Director of Capri Global Capital Ltd, the adjusted growth projection of 7.2 per cent and the anticipated inflation rate of 4.5 per cent for 2024-25 reflect a more robust and resilient economy influenced by positive trends in economic activity and enhanced confidence among businesses and consumers.
The Monetary Policy Committee, which comprises three RBI members and an equal number of external members, decided to maintain the repo rate at 6.50 per cent for an eighth consecutive policy meeting.
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