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What is the payments fraud reporting platform for banks?

Reserve Bank of India (RBI) has migrated the payments fraud reporting module to DAKSH.

What is DAKSH?

“दक्ष (DAKSH) - Reserve Bank’s Advanced Supervisory Monitoring System” is a SupTech initiative which is expected to make the Supervisory processes more robust. 

DAKSH means ‘efficient’ & ‘competent’, reflecting the underlying capabilities of the application. 

What are the features of DAKSH?

  • DAKSH is a web-based end-to-end workflow application through which Reserve Bank of India (RBI) will monitor compliance requirements in a more focused manner with the objective of further improving the compliance culture in Supervised Entities (SEs) like Banks, NBFCs, etc. 
  • The application will also enable seamless communication, inspection planning and execution, cyber incident reporting and analysis, provision of various MIS reports etc., through a Platform which enables anytime-anywhere secure access.

What is the payments fraud reporting platform for banks?

Earlier, banks were reporting all banking frauds to the Central Fraud Monitoring Cell of RBI. 

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

To streamline reporting, enhance efficiency and automate the payments fraud management process, the fraud reporting module has been migrated from Electronic Data Submission Portal (EDSP) to DAKSH. The migration will be effective from January 01, 2023.

What are the features of payments fraud reporting module in DAKSH?

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

What are the guidelines for reporting of payments fraud on DAKSH?

  • 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. 
  • The responsibility to submit the reported payment fraud transactions shall be of the issuer bank / PPI issuer / credit card issuing NBFCs, who’s issued payment instrument has been used in the fraud.
  • Entities are required to validate the payment fraud information reported by the customer in their own systems to ensure the authenticity and completeness, before reporting the same to RBI on individual transaction basis.
  • Entities are required to report payment frauds (domestic and international) to CPFIR as per the specified timelines (currently within 7 calendar days from date of reporting by customer / date of detection by the entity).
  • Entities may continue to report payment frauds as per the extant reporting format using the bulk upload facility in DAKSH or report individual payment frauds online using the screen-based facility under the Incident Module of the DAKSH platform.
  • After go-live of payment fraud reporting in DAKSH effective January 01, 2023, entities shall not be able to report any payment frauds in EDSP. Entities may, however, continue to update and close payment frauds that were reported in EDSP until December 31, 2022. RBI shall subsequently migrate the historical data from EDSP to DAKSH.
  • Though some elements / fields of the Reporting Format are indicated as ‘Optional’, entities shall strive to include them as part of initial reporting itself and only in exceptional cases be reported as updates.


References

Reserve Bank of India. (2019, August 07). 'Statement on Developmental and Regulatory Policies'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=47819

Reserve Bank of India. (2022, December 26). 'Central Payments Fraud Information Registry – Migration of Reporting to DAKSH'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12431&Mode=0

Reserve Bank of India. (2022, October 06). 'RBI launches दक्ष (DAKSH) - Reserve Bank’s Advanced Supervisory Monitoring System'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=54503


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