Digital Payments and Cybersecurity: Budget Priorities for a Resilient Fintech Ecosystem
Shikhar has a strong background in digital and financial services. He holds a degree in business administration and has pursued advanced studies in management and finance. With over 5 years of experience building skilled global teams and driving innovation, Shikhar has led the company to become a global leader.
India's push towards a fully digital economy places significant importance on the Union Budget 2025, particularly for the Fintech and cybersecurity sectors. While digital transformation has unlocked tremendous potential, it has also exposed vulnerabilities in cybersecurity and digital payments. A key question now is how the government will ensure that innovation and security advance together.
BLS E-Services, a leading digital player committed to transforming the delivery of government and financial services across India, focuses on "Delighting the Citizen, Strengthening the Nation." We operate through various models and touchpoints to ensure seamless citizen engagement and financial inclusion. Recognizing our contributions to advancing digital payments, we received a Certificate of Appreciation from our partner SBI last year.
A Call for Homegrown Cybersecurity Innovation
India’s reliance on foreign technologies to secure its digital platforms has long been a concern. To address this, stakeholders are urging the government to establish dedicated Research and Development (R&D) hubs for cybersecurity. These centers could be instrumental in crafting solutions tailored to the country’s unique challenges, be it combating deepfakes, preventing data breaches or responding to sophisticated cyberattacks. The vision is clear - India must become a global leader in cybersecurity innovation by fostering homegrown technologies.
Recently, the Reserve Bank of India (RBI) has developed an AI/ML-based model called MuleHunter.ai to tackle the issue of mule accounts, which are used for financial fraud. These accounts help criminals launder money from cybercrimes. The model will use data from banks to identify fraud patterns more effectively. Developed by the Reserve Bank Innovation Hub, the new initiative is piloted with two public sector banks.
A mule account is a bank account used by criminals to launder illicit funds, often set up by unsuspecting individuals lured by promises of easy money or coerced into participation. The transfer of funds through these highly interconnected accounts makes it difficult to trace and recover the funds.
According to the National Crime Records Bureau (NCRB), online financial frauds account for 67.8 percent of cybercrime complaints, highlighting the critical need for effective AI-based fraud prevention solutions. Mule account cases have been on the rise, and a whopping 53% of the total fraud threats to financial institutions were caused by money mules in 2023.
RBI has also asked banks to collaborate with its initiative MuleHunter.AI to weed out mule accounts that are used to commit financial fraud. By working together, the government and private sector can develop shared resources, exchange threat intelligence, and build robust defenses against emerging cyber threats. The message is simple - collaboration is key to resilience.
Bridging the Cybersecurity Talent Gap
No cybersecurity strategy is complete without skilled professionals to implement it. Yet, the demand for cybersecurity experts far outstrips the supply, creating a talent gap that threatens the nation’s digital progress. To address this, industry leaders are advocating for substantial investments in upskilling programs.
Educational institutions could partner with the government to develop specialized curricula focused on cybersecurity. Subsidized training programs for IT professionals and initiatives to attract young talent to this field could ensure a steady pipeline of skilled individuals. The goal is to equip India’s workforce with the knowledge and expertise needed to combat evolving cyber threats.
Securing Trust in Digital Payments
The rise of digital payments has transformed how Indians transact, but it has also raised questions about safety. Data breaches, identity theft, and cyber fraud remain significant risks. While the Digital Personal Data Protection (DPDP) Act provides a framework for data privacy, its effective implementation is critical to safeguarding consumer trust.
Industry leaders are calling for increased budget allocations to strengthen digital payment security. Investments in advanced threat detection systems and incident response protocols could go a long way in creating a safe environment for both businesses and consumers. After all, trust is the cornerstone of any thriving digital economy.
A Holistic Approach to Cybersecurity
As India continues to integrate artificial intelligence and other advanced technologies, the stakes for cybersecurity have never been higher. Leaders emphasize the need for a holistic approach that combines innovation, education and incentives. Tax benefits for businesses that prioritize cybersecurity, lower import duties on critical hardware and funding for Public Private Partnership (PPPs) are all seen as essential steps in creating a resilient ecosystem.
The Road Ahead
The Union Budget 2025 is a chance to shape the future of India’s digital economy. By addressing the challenges of cybersecurity and digital payments head-on, the government can lay the groundwork for a secure and innovative ecosystem.
Industry leaders believe this is India’s moment to lead, not just participate, in the global digital economy. By investing in the right areas, the nation can create an environment where businesses thrive, innovation flourishes, and users feel secure.
The question now is: will the budget deliver on these priorities and pave the way for a more resilient digital future?
India's push towards a fully digital economy places significant importance on the Union Budget 2025, particularly for the Fintech and cybersecurity sectors. While digital transformation has unlocked tremendous potential, it has also exposed vulnerabilities in cybersecurity and digital payments. A key question now is how the government will ensure that innovation and security advance together.
BLS E-Services, a leading digital player committed to transforming the delivery of government and financial services across India, focuses on "Delighting the Citizen, Strengthening the Nation." We operate through various models and touchpoints to ensure seamless citizen engagement and financial inclusion. Recognizing our contributions to advancing digital payments, we received a Certificate of Appreciation from our partner SBI last year.
A Call for Homegrown Cybersecurity Innovation
India’s reliance on foreign technologies to secure its digital platforms has long been a concern. To address this, stakeholders are urging the government to establish dedicated Research and Development (R&D) hubs for cybersecurity. These centers could be instrumental in crafting solutions tailored to the country’s unique challenges, be it combating deepfakes, preventing data breaches or responding to sophisticated cyberattacks. The vision is clear - India must become a global leader in cybersecurity innovation by fostering homegrown technologies.
Recently, the Reserve Bank of India (RBI) has developed an AI/ML-based model called MuleHunter.ai to tackle the issue of mule accounts, which are used for financial fraud. These accounts help criminals launder money from cybercrimes. The model will use data from banks to identify fraud patterns more effectively. Developed by the Reserve Bank Innovation Hub, the new initiative is piloted with two public sector banks.
A mule account is a bank account used by criminals to launder illicit funds, often set up by unsuspecting individuals lured by promises of easy money or coerced into participation. The transfer of funds through these highly interconnected accounts makes it difficult to trace and recover the funds.
According to the National Crime Records Bureau (NCRB), online financial frauds account for 67.8 percent of cybercrime complaints, highlighting the critical need for effective AI-based fraud prevention solutions. Mule account cases have been on the rise, and a whopping 53% of the total fraud threats to financial institutions were caused by money mules in 2023.
RBI has also asked banks to collaborate with its initiative MuleHunter.AI to weed out mule accounts that are used to commit financial fraud. By working together, the government and private sector can develop shared resources, exchange threat intelligence, and build robust defenses against emerging cyber threats. The message is simple - collaboration is key to resilience.
Bridging the Cybersecurity Talent Gap
No cybersecurity strategy is complete without skilled professionals to implement it. Yet, the demand for cybersecurity experts far outstrips the supply, creating a talent gap that threatens the nation’s digital progress. To address this, industry leaders are advocating for substantial investments in upskilling programs.
Educational institutions could partner with the government to develop specialized curricula focused on cybersecurity. Subsidized training programs for IT professionals and initiatives to attract young talent to this field could ensure a steady pipeline of skilled individuals. The goal is to equip India’s workforce with the knowledge and expertise needed to combat evolving cyber threats.
Securing Trust in Digital Payments
The rise of digital payments has transformed how Indians transact, but it has also raised questions about safety. Data breaches, identity theft, and cyber fraud remain significant risks. While the Digital Personal Data Protection (DPDP) Act provides a framework for data privacy, its effective implementation is critical to safeguarding consumer trust.
Industry leaders are calling for increased budget allocations to strengthen digital payment security. Investments in advanced threat detection systems and incident response protocols could go a long way in creating a safe environment for both businesses and consumers. After all, trust is the cornerstone of any thriving digital economy.
A Holistic Approach to Cybersecurity
As India continues to integrate artificial intelligence and other advanced technologies, the stakes for cybersecurity have never been higher. Leaders emphasize the need for a holistic approach that combines innovation, education and incentives. Tax benefits for businesses that prioritize cybersecurity, lower import duties on critical hardware and funding for Public Private Partnership (PPPs) are all seen as essential steps in creating a resilient ecosystem.
Securing innovation is the foundation of a thriving digital economy, where technology and trust drive the future of India's fintech ecosystem to ensure safety for the people
The Road Ahead
The Union Budget 2025 is a chance to shape the future of India’s digital economy. By addressing the challenges of cybersecurity and digital payments head-on, the government can lay the groundwork for a secure and innovative ecosystem.
Industry leaders believe this is India’s moment to lead, not just participate, in the global digital economy. By investing in the right areas, the nation can create an environment where businesses thrive, innovation flourishes, and users feel secure.
The question now is: will the budget deliver on these priorities and pave the way for a more resilient digital future?
