RBI vide its notification RBI/2022-23/158 and circular no. CO.DPSS.OVRST.No.S1619/06-08-005/2022-2023 dated December 26, 2022 has migrated its fraud reporting module to DAKSH – Reserve Bank Advanced Supervisory Monitoring system. The notification has been issued under Section 10 (2) read with Section 18 of Payment and settlement Systems Act, 2007.
Earlier, payment frauds by scheduled commercial banks and non-bank Prepaid Payment Instrument (PPI) issuers were reported to Central Payments Fraud Information Registry (CPFIR). But in order to streamline reporting, enhance efficiency and automate the payments fraud management process, the fraud reporting module is being migrated to DAKSH. The migration will be effective from January 01, 2023, i.e., entities shall commence reporting of payment frauds in DAKSH from this date.
As per annexure to Annex to Circular CO.DPSS.OVRST.No.S1619/06-08-005/2022-2023, all RBI authorized 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. This reporting was earlier facilitated through Electronic Data Submission Portal (EDSP) and is being migrated to DAKSH. The responsibility to submit the reported payment fraud transactions shall be of the issuer bank / PPI issuer / credit card issuing NBFCs, whose issued payment instrument has been used in the fraud.
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. Reserve Bank shall subsequently migrate the historical data from EDSP to DAKSH.