IDBI Bank and BCT Digital completes RBI’s regulatory sandbox on financial fraud prevention

Chennai, July 2, 2024: BCT Digital, a Bahwan Cybertek Group company, is a global digital transformation company delivering FinTech, RegTech, and SustainTech solutions, proudly announces the successful regulatory sandbox testing and subsequent approval of BCT’s rt360 Real-Time Management System (RTMS), by the Reserve Bank of India (RBI). This milestone was achieved through a rigorous evaluation during the Fourth Cohort of the Regulatory Sandbox themed ‘Prevention and Mitigation of Financial Frauds’. The testing was conducted in collaboration with IDBI Bank, a longstanding partner of BCT.

Elaborating on this achievement, Ms. Jaya Vaidyanathan, CEO, of BCT Digital, said, “We are thrilled to have successfully participated in the 4th Cohort of the RBI Regulatory Sandbox under the theme of ‘Prevention and Mitigation of Financial Frauds’. The approval of BCT’s rt360 Real Time Monitoring System by the RBI underscores our dedication to combatting fraud within the banking sector. This achievement not only validates our efforts but also inspires us to expand into new products, market segments, and global geographies. We extend our gratitude to the RBI, IDBI Bank’s Managing Director, Deputy Managing Director, and the officials of the Information Technology and Credit Monitoring Departments for their partnership and support. This marks a significant advancement for the Indian banking ecosystem, moving towards proactive fraud prevention rather than reactive measures.”

Mr. Sunit Sarkar, Executive Director, IDBI Bank, noted, “The successful sandbox testing of BCT’s rt360 Real Time Monitoring System at IDBI Bank represents a significant milestone in our digital transformational journey. Collaborating closely with BCT and RBI officials, our dedicated teams from both the Business and Technology divisions played a pivotal role in this achievement. Accessing core banking data in real-time/near real-time through advanced technology platforms for testing in the sandbox environment underscores our commitment to leveraging innovation in safeguarding transactions and combating financial fraud effectively. Embracing disruptive technologies, we deliver future-ready digital outcomes, reinventing business models to pioneer seamless digital experiences.”

The rt360 Real Time Monitoring System enables banks to monitor transactions in real-time or near real-time, crucial in today’s landscape of high-volume and high-velocity transactions where traditional methods struggle to keep pace with innovative fraud schemes and fund movement tracking challenges. While existing Enterprise Fraud Risk Management systems primarily address channel frauds impacting liability accounts, rt360 focuses on addressing credit frauds, a significant component of overall fraud incidents.

This is the gap that the rt360 Real Time Monitoring System seeks to fill. The solution helps banks monitor accounts on several parameters such as transaction-based events (transfer from a loan account to a suspicious entity, suspicious transaction patterns, etc.) with real-time alerting for a pro-active/pre-emptive follow-up and action.

The objective of the regulatory sandbox was to detect suspicious transactions while they occurred and to alert the bankers in real time so that they could proactively take action to minimize financial losses to the bank. Specifically, the system scanned crores of transactions at the bank, day in and day out, processed transactions within 2-3 minutes of occurrence, and further alerted bankers of suspicious transactions in milliseconds.