May 29, 2024

Risk Analysis Frauds

RBI’s Sandbox: Where Fintech Meets Fraud-Proofing

The RBI’s 4th cohort of the sandbox scheme, which aims to prevent and mitigate financial fraud, has selected six entities, including HSBC and Creditwatch, to participate in the test phase of the programme. The programme’s overall goal is to reduce the incidence of financial fraud.

The Central Bank of India requested applications on January 5 for the trial phase of the 4th cohort of its “regulatory sandbox.” The phrase “avoiding and minimizing financial fraud” will be the central focus. The evaluation of novel services or goods in a controlled setting, known as a “regulatory sandbox”, refers to the process in which the regulator may enable some flexibility for testing the new product or service.

The Reserve Bank of India thinks that the regulatory sandbox makes it possible for all relevant parties to carry out field tests, including the supervisor, the inventor, the operator, and the end user of the technology in question. The Reserve Bank of India (RBI) received nine applications for this regulatory sandbox, and of those, six of them were chosen for testing the following products:

 

  • A comprehensive range of services for monitoring transfers and occurrences from consumer loans in a consistent and real-time manner (Bahwan Cybertech Pvt Ltd)
  • An early detection system for credit checks and fraud recognition (Crediwatch Information Analytics Pvt Ltd)
  • Risk analysis verification solution for frictionless low-value payments (Wimbo- enStage Software Pvt Ltd)
  • Closed consumer group AI/ML-based approach for card-not-present detection of fraud (HSBC in partnership with Wibmo)
  • Seal the login form, payment form, and ATMs, and facilitate it only for the authenticated users to initiate the transfer of funds using credentials via napID (napID Cybersec Pvt. Ltd.)
  • Address validation using proprietary artificial intelligence algorithms operated on non-personally personal information such as subscriber activity and location indicators (Trusting Social Pvt Ltd).

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