New Delhi, April 21 -- With digital frauds surging, the government is planning a nationwide financial and digital literacy drive to tap grassroots workers and local institutions to curb rising scams, including so-called "digital arrest" frauds, according to three people aware of the matter.

The effort will combine grassroots awareness with technology-led safeguards, including AI-based transaction monitoring, dedicated grievance redress systems and closer coordination between regulators, banks and state agencies, one of the people cited above told Mint.

The plan includes measurable targets for banks to promote safe digital behaviour and fraud awareness, while focusing on vulnerable users such as senior citizens, first-time digital custom...