To address financial frauds with urgency, the MHA also launched the ‘Citizen Financial Cyber Fraud Reporting and Management System’
As cyber threats become increasingly sophisticated, the Indian government has been intensifying efforts to protect citizens and financial institutions from digital crimes. In collaboration with financial regulators and key stakeholders, a series of coordinated steps have been taken to reinforce the country’s cyber defences, with a strong emphasis on reporting mechanisms, real-time fraud intervention, and AI-powered monitoring systems.
To streamline cybercrime response, the Ministry of Home Affairs (MHA) has set up the Indian Cyber Crime Coordination Centre (I4C). Serving as an attached office, the I4C provides a structured ecosystem for law enforcement agencies (LEAs) to tackle cybercrimes in a more organised and efficient manner. One of its flagship initiatives, the National Cyber Crime Reporting Portal, enables citizens to report various types of cyber offences. Complaints lodged through the portal are automatically routed to the appropriate State or Union Territory LEAs for further legal action.
To address financial frauds with urgency, the MHA also launched the ‘Citizen Financial Cyber Fraud Reporting and Management System’. This platform facilitates immediate reporting of financial scams and helps freeze fraudulent transactions before funds can be siphoned off. Since its inception, approximately Rs. 4,386 crore has been safeguarded, linked to around 13.36 lakh reported cases. A suspect registry of cybercriminal identifiers has also been rolled out in partnership with banks and financial institutions, improving coordination and data sharing.
In parallel, regulatory bodies such as the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have implemented technical safeguards to secure digital payment ecosystems. In 2021, the RBI issued Master Directions on Digital Payment Security Controls, setting minimum security standards for payment channels including mobile apps, card transactions, and online banking. These directions focus on protecting consumers from emerging digital threats while promoting standardisation across financial platforms.
As part of its technological initiatives, the RBI has introduced an artificial intelligence (AI)-powered tool called ‘MuleHunter’, aimed at identifying accounts used as money mules in fraudulent transactions. Banks and financial institutions have been encouraged to integrate this tool into their operations for proactive threat detection.
NPCI, the organisation behind India’s widely used UPI platform, has introduced multiple layers of defence for user protection. These include device binding that links mobile devices to specific user accounts, two-factor authentication using secure PINs, and daily transaction limits. Additionally, AI/ML-powered fraud detection tools are provided to member banks, enabling them to generate real-time alerts and block suspicious transactions.
Public awareness remains an essential pillar of the government’s cyber strategy. To promote safer digital practices, the RBI and several banks have launched nationwide awareness campaigns through SMS, radio, and other mass communication channels, educating users on common cyber fraud tactics and preventive steps.
As India continues to digitise its economy, these multi-pronged efforts—spanning law enforcement, regulation, and public outreach—aim to build a more secure and resilient financial ecosystem for all citizens.
