India’s largest lender, State Bank of India (SBI), and Bank of Baroda (BoB) are coming together to create a new artificial intelligence-driven platform called the Indian Digital Payment Intelligence Corporation (IDPIC). The aim is to detect and prevent digital payment frauds in real time. Let’s understand what makes this initiative special and how it will function.

What Is IDPIC and Who Will Be Involved?
According to an Economic Times report, all 12 public sector banks in India will hold a stake in the IDPIC. The company will operate under Section 8 — meaning it will be a non-profit entity. Its authorized capital will be ₹500 crore, while the paid-up capital is set at ₹200 crore.

How Will the Platform Work?
The IDPIC will use Artificial Intelligence (AI) and Machine Learning (ML) to track and block fraudulent banking transactions in real time. Initially, senior officials from SBI and Bank of Baroda will be appointed to the Board of Directors.

Both banks have agreed to invest ₹10 crore each in the project’s first phase. Other public sector banks will also contribute financially and participate in the rollout. The banks have already applied to the Ministry of Corporate Affairs (MCA) for approval of the company’s name and registration.

Why Was This Initiative Needed?
While digital payments in India have grown rapidly, so has the risk of online fraud. According to RBI data, banking frauds in FY24 amounted to ₹36,014 crore, compared to ₹12,230 crore a year earlier — a nearly threefold increase in just one year.

Current Measures to Prevent Fraud
At present, cybercrime cases are monitored by the Indian Cyber Crime Coordination Centre (I4C).
Banks are also using RBI’s MuleHunter.AI technology to identify mule accounts — accounts used by fraudsters to launder or conceal stolen money. This system is already adopted by Canara Bank, Punjab National Bank, Bank of India, Bank of Baroda, and AU Small Finance Bank.

RBI’s Own Initiative
Recently, RBI Deputy Governor T. Rabi Sankar announced that the central bank is developing its own Digital Payment Intelligence System. This system will integrate multiple data sources — such as mule accounts, telecom information, and location data — to train AI models that can instantly detect and prevent fraudulent activities.

✅ Bottom Line:
The SBI–BoB initiative marks a major step toward strengthening India’s digital payment security. With AI and real-time fraud detection, the system aims to make online transactions safer and more reliable for millions of users.