Fintech Facade: RBI probes surge in API-based money laundering
Published on: Nov. 23, 2025, 11:23 p.m. | Source: The Economic Times
Shady technology service providers (TSPs) posing as fintechs are exploiting banks payout APIs to move large sums without oversight, raising concerns across the payments industry. These APIs, meant for bulk automated transfers to employees or vendors, allow transactions without OTPs or manual checks, creating an opening for money laundering by unregulated players who present themselves as genuine customers.
