Minimize Fraud – Development of secured automated system for Direct Benefit Transfer


One of the most important components of the governments ambitious DBT is the NPCI’s transfer channel between the Government departments and the beneficiary banks.

At present, the transfer of data between the government banks, sponsor banks and the destination banks is a manual process. At each level the respective users have to upload or download the data files in the NPCI network.  On closer observation, it was noticed that in the manual process, there were high chances of changes in the original beneficiary details being submitted by the government departments.

The requirements of the government user departments/government auditors are simple

01) There should be no alterations to the original data.

02)Unsuccessful transactions to be reported back to the user department without any manual intervention.

03)Amount for the unsuccessful transactions to be credited back on the same day of the debit, with narration of related transactions ID as available in the original transaction details.

04)There should be a comprehensive MIS to deal with any queries or complaints at all levels.


The alterations could be done knowingly or unknowingly. To minimize fraudulent alterations, Department of Expenditure, Ministry of Finance, Government of India, has advised the respective banks to complete automate the processing of input files received from Government User Departments.

The broad guidelines are

A)   All banks need to develop (if not already available) end to end, fully automated systems, for processing of the secured digitally signed single payment file received from User Department/CPSMS and reporting back the success/failure status of each record to the CPSMS/User Department.

B)    Destination Banks need to ensure that they have the necessary software utility to process the files received, credit accounts of the beneficiaries and furnish report of all records to NPCI / sponsor bank on the settlement date so that User account can be credited back in respect of the un-credited items by the Sponsor Bank on the same day.

Majority of the sponsor banks are already having automated systems for file processing and also have secure server to server connectivity with CPSMS server. However, such a secure server to server connectivity between banks and NPCI does not exist.

NPCI has already issued the guideline for server to server connectivity and testing by a group of 5 banks has already commenced.  Based on the work done by NPCI in the pilot, all banks have been advised to operationalise this by May, 2013.

As RRBs’ too are part of the DBT, Sponsor banks have been advised that a similar solution for their sponsored RRBs is in place.

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