Pointing to the “alarming situation” of financial crimes in India, Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director, National Payments Corporation of India (NPCI), on Thursday said cyber criminals have siphoned off ₹1,750 crore in the first four months of 2024.
“The increasing sophistication of fraud, often leveraging AI and cryptocurrencies, poses significant challenges. Criminals have adapted quickly to new defences, utilising technologies like deepfake fraud and human-operated ransomware attacks to perpetrate complex scams at minimal cost. The role of money mules further complicates these efforts, adding layers of difficulty in tracing illicit funds,” Choudhary said during a special keynote address at the Global Fintech Fest 2024.
He pointed out that globally over $3 trillion illicit funds flowed through the financial system in 2023, fuelling crimes like drug trafficking, human trafficking, and terrorism. “NPCI’s initiatives, including the real-time fraud risk monitoring and management (FRM) solution and public awareness campaigns, are pivotal in safeguarding the financial ecosystem… a pilot is being run by NPCI on identification of mule accounts based on payment system data, and banks are being sensitised on the outcome of these models,” he said.
Cross-border collaborations
NPCI is expanding globally, Choudhary said. “NPCI International Payments Limited, a wholly owned subsidiary of NPCI, is at the advanced stage of extending UPI and RuPay card arrangements and its linkages with India in various other jurisdictions and entities, including in the UAE, Qatar, entities in France, Namibia, Peru, Bhutan, Sri Lanka, Mauritius, and Nepal.”
He said the launch of the UPI PayNow linkage between India and Singapore was a testament to the potential of cross-border fintech collaboration. “This initiative enables real-time, low-cost remittances between the two countries, benefiting millions of workers, students, and businesses. As more nations look to replicate this model, India is well-positioned to support the development of a global digital payment network,” the official added.
According to Choudhary, India’s fintech sector is projected to expand from $110 billion to $420 billion over the next five years, at a compounded annual growth rate (CAGR) of 31 per cent. “Further, our nation is third globally in terms of the number of fintech companies at more than 9,000... Today, India is home to over 30 fintech unicorns, and this number is expected to grow to 100 by 2030,” he said.
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