As India’s digital payments ecosystem reaches record highs, public sector banks are joining forces to strengthen cyber security. The State Bank of India (SBI) and Bank of Baroda (BoB) are leading a consortium to establish a national AI-powered fraud detection network that will safeguard millions of daily transactions from evolving digital threats.
Strengthening India’s digital security network
India’s rapid adoption of digital transactions has transformed how money moves — from small businesses using QR codes to e-commerce platforms enabling seamless payments. However, this growth has also opened doors for cybercriminals. In response, SBI and BoB are developing an artificial intelligence (AI) and machine learning (ML)-based system that can detect and prevent fraudulent activity in real time.
The initiative is part of a larger national strategy to protect the digital payment ecosystem amid rising cases of phishing, mule accounts, and coordinated online attacks. Both banks have committed ₹10 crore each to the first phase of development, reflecting a strong shift towards technology-led collaboration in financial crime prevention.
Formation of the Indian Digital Payment Intelligence Corporation
At the core of this effort is the Indian Digital Payment Intelligence Corporation (IDPIC), a Section 8 non-profit organisation established with 12 public sector banks as shareholders. The corporation aims to serve as a central intelligence hub for payment security, analysing transactions across member banks to identify suspicious behaviour and respond quickly to potential threats.
Unlike traditional standalone systems, IDPIC will integrate data from multiple banks, creating a unified national network for fraud detection. The initiative reflects growing recognition that effective cyber defence requires collaboration rather than isolated action, especially as fraud networks increasingly operate across institutions.
AI, behavioural biometrics, and real-time insights
The IDPIC platform will use advanced AI models trained on large-scale transaction data to detect anomalies such as unusual spending patterns, device inconsistencies, or irregular user behaviour. The system builds upon the Reserve Bank of India’s MuleHunter AI framework but introduces behavioural biometrics and self-learning algorithms that enhance accuracy over time.
By analysing behavioural indicators — including login timing, device fingerprints, and user interaction patterns — the platform can flag subtle signs of fraud that traditional systems often overlook.
A unified response to cyber threats
India’s surge in digital payments has been accompanied by a sharp increase in cyber fraud, particularly targeting new digital users. The establishment of IDPIC signals a proactive approach to fraud prevention, shifting from reactive measures to real-time monitoring and coordinated defence.
This collective initiative not only enhances payment security but also strengthens public confidence in digital transactions, ensuring that India’s transition to a cashless economy remains both efficient and secure.
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