The Reserve Bank of India has selected six entities, including Bahwan Cybertek, Crediwatch Information Analytics and HSBC, for the ‘Test Phase’ under regulatory sandbox for the theme ‘Prevention and Mitigation of Financial Frauds’.

The selected entities will commence testing of their products from February 2023.

Selected entities

RBI said Bahwan Cybertek’s solution ‘rt360 Real Time Monitoring System’ provides a comprehensive surveillance mechanism for monitoring transactions and events from loan accounts on a continuous and real time basis.

Crediwatch Information Analytics solution ‘Crediwatch EWS’ is an early warning system for credit monitoring and fraud identification that looks at data across public and private data sources to uncover early signs of trouble for commercial borrowers, per a central bank statement.

enStage Software (Wibmo)‘s product ‘Trident FRM’ is a risk-based authentication solution aimed at providingfrictionless (without OTP) transaction experience for low value transactions based on risk assessment of users, RBI said.

The product by HSBC (in collaboration with Wibmo) is a closed user group AI/ML based solution which helps in card-not-present fraud detection by leveraging the power of collaboration across banks and financial institutions using historical transactions and contextual information through advanced technologies according to the statement.

napID Cybersec’s product ‘napID Fraud Filter Layer’ locks the login form, payment form, ATM, POS machines and enable it only for the authorised user to initiate the transaction using their credentials via napID Zero-Factor Authenticator app, RBI said.

Trusting Social’s product ‘Trusting Social CI & AV’ helps in address verification by running its proprietary AI algorithms on non-personally identifiable data on subscriber usage, location signals and other such parameters to predict residential and office address of users, according to the statement.

Risk management

“This helps to verify the accuracy and stability of address/location declared by prospective customers. Further the credit insight feature uses mobile subscriber data to risk rank the active subscribers bases in order to assess the risk of default of a loan applicant,” RBI said.

The ‘regulatory sandbox’ allows the regulator, the innovators, the financial service providers (as potential deployers of the technology) and the customers (as final users) to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks.