Digital payments have gained widespread popularity among Indian households. The approach of payment channels like UPI, Paytm, and Google Pay has not just made digital transactions comfortable rather they have also emphasized risk management as a major focal point in the payment ecosystem.
In the 2019 survey led by McAfee, one-fourth of Indians admitted to having been victimized by phishing scams over phone, email, or text. To address this, the Reserve Bank of India has been establishing regulatory measures with tech innovations to provide users a safe environment for digital transactions.
Risk and safeguard measures
The onset of increasing digital transactions has led several banks to examine real-time data analytics to subdue all kinds of fraudulent transactions. India has the 2nd highest volume of debit cards issued globally, with nearly 816 million debit cards and more than 56 million credit cards. Therefore, RBI has been trying to subdue card-related fraud. Also, fintech companies are developing password-less authentication to assure the security of debit or credit card users.
Banks have also started informative programs for account holders to be careful about numerous risks in card-related transactions. On a regular basis most banks reach out to their customers notifying such frauds, they also prepare for some primary steps to lessen such perils. Amidst the pandemic, debit and credit cards, digital payment platforms have increased prevalence amongst a large number of customers. As per a report named ‘India Digital Payments Report 2019’ from the payments company Worldline India (WI), UPI is one of the most favored methods of payment in terms of quantity followed by debit cards and credit cards. In 2019, UPI showed a transaction volume of nearly 10.8 billion.
Conventional banks are seeking to adjust to the realities of digitalization, advanced technology, and increasing consumer demands. As per the new RBI directive on physical, virtual, and contactless cards requires banks and card issuers to offer services like modifying transaction limits and card on/off option as per the cardholder’s convenience. Further, these services have to be accessible to customers through multiple channels, 24×7.
The modern banking system says that bank consumers will soon look for services with certified safety standards and comfort. With governing bodies in India striving proactively to offer security measures, industry experts assert that the collaborations between banks and FinTech are to develop and progress.