{"id":34344,"date":"2018-10-30T17:06:30","date_gmt":"2018-10-30T11:36:30","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34344"},"modified":"2018-10-30T17:06:30","modified_gmt":"2018-10-30T11:36:30","slug":"legal-steps-to-guard-digital-payments","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/legal-steps-to-guard-digital-payments\/","title":{"rendered":"Legal steps to guard digital payments:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-national\/legal-steps-to-guard-digital-payments\/article19921368.ece\"><span style=\"font-weight: 400;\">Legal steps to guard digital payments<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Home Ministry has asked banks and e-wallet firms to furnish details of the extent of financial fraud reported in the past one year as digital transactions picked.<\/span><\/p>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The use of mobile wallets and online transactions has spiked since demonetisation.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">A high-level committee of the Ministry convened a meeting in this regard with the officials of banks, e-wallet firms and the Reserve Bank of India to understand the extent of technological misuse and financial frauds committed through digital means.<\/span><\/li>\n<\/ul>\n<p><b>Meaning of Digitalization:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Digitalization is the integration of digital technologies into everyday life by the digitization of everything that can be digitized.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Digitalization also means the process of <\/span><b>making digital everything<\/b><span style=\"font-weight: 400;\"> that can be digitized and the process of converting information into digital format.<\/span><\/li>\n<\/ul>\n<p><b>Advantages of digitalization:<\/b><\/p>\n<ol>\n<li><b>Increasing digital literacy <\/b><span style=\"font-weight: 400;\">and Internet access can lead to e<\/span><b>conomic empowerment and reduce social inequality.<\/b><\/li>\n<li><b>Good governance<\/b><span style=\"font-weight: 400;\"> :Use of information technology can make government system more transparent and accountable, enhance efficiency in delivery of various services, simplify procedures, reduce leakages in subsidies and has potential to reduce corruption.<\/span><\/li>\n<li><b>Growth:<\/b><span style=\"font-weight: 400;\"> Digitization has a direct correlation with faster growth ,development and welfare<\/span><\/li>\n<li><b>Employment to jobless<\/b><\/li>\n<\/ol>\n<p><b>Challenges for Digitalization:<\/b><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">Low digital literacy<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Lack of adequate infrastructure to protect data.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Cases of cyber crimes are rising<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Many rural areas remains isolated from internet and cellular services<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Women have comparatively poor access to online services, which widens the gender gap.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Poverty is one of the obstacle in digital development<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A digital economy poses security risks like theft of \u00a0debit cards in India.<\/span><\/li>\n<\/ol>\n<p><b>Cashless Economy<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Decreased reliance on liquid money . All transactions are done \u00a0by using cards or by digital means<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The people using the means of e-commerce, mobile banking or Internet banking for their purchase or for their transaction<\/span><\/li>\n<\/ul>\n<p><b>Advantages of cashless economy:<\/b><\/p>\n<p><b>Advantages for the society:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Reduces the circulation of liquid money<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The black money or parallel money cannot be able to sustain<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The transaction process and purchase will made easy<\/span><\/li>\n<li><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">No need to carry cash. Just carrying the required cards or mobile banking will\u00a0 \u00a0 \u00a0suffice.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">More sense of safety with a PAN protected card etc.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">No fear of being robbed unlike carrying cash and letting everyone know that\u00a0 \u00a0 \u00a0there could be something worth snatching.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Now labour get their payment in their bank accounts therefore minimum wages as per Indian Labour Law can be ensured.<\/span><\/li>\n<\/ul>\n<ol start=\"2\">\n<li><b><\/b><span style=\"font-weight: 400;\"> \u00a0<\/span><b>Advantages for the economy:<\/b><\/li>\n<\/ol>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Digital payments indirectly reduce expenditure in manufacturing currency notes and its transportation.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Electronic transactions also help in curbing corruption and black money flow which in ameliorate economic growth.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span><span style=\"font-weight: 400;\">It becomes easier to determine how much was spent where, and one able to manage the budget.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Cashless economy increase transparency in the system<\/span><\/li>\n<\/ul>\n<p><b>3.Advantages for the government:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The government can control the financial transactions in the society.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">More \u00a0\u00a0\u00a0transparency and easy to track money laundering and other such activities.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Helps to eliminate counterfeit currencies<\/span><\/li>\n<li><span style=\"font-weight: 400;\">If the government finds a person guilty government can block his\/her transaction.<\/span><\/li>\n<\/ul>\n<p><b>Disadvantage of cashless economy:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Higher risk of identity theft<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Cashless transaction system is not widespread due to lack of education and technology gap which is a matter of concern and must be addressed by government or financial institutions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Direct threat to cyber security and individual financial data.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Increase in online banking fraud.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">As per the survey automation will cut 70,000 jobs in India.<\/span><\/li>\n<\/ul>\n<p><b>Government schemes related to Digitalization:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The <\/span><b>Digital India Programme<\/b><span style=\"font-weight: 400;\"> is the flagship programme launched by the Government of India <\/span><b>with a vision to transfer India into digitally empowered society and knowledge economy.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>Unified Payments Interface (UIP)-the payment system that allows mobile-enabled money transfer between bank accounts is also a step towards digitalization of economy.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>Bharat Interface for Money (Bhim app),<\/b><span style=\"font-weight: 400;\"> the common <\/span><b>app that can be used by anyone who has a bank account with a linked mobile number.<\/b><span style=\"font-weight: 400;\"> Bhim provides a Smartphone front-end to make bank-to-bank payments.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The government also unveiled two schemes \u2013<\/span><b>Lucky Grahak Yojana<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Digi Dhan Vyapaar<\/b> <b>Yojana<\/b><span style=\"font-weight: 400;\"> for customers and trades alike <\/span><b>to promote mobile banking and e-payments.<\/b><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Finance minister Arun Jaitley proposed a slew of measures to hasten India\u2019s movement to a cashless economy like ban on cash transactions more than Rs 3 lakh, tax breaks for the creation of a cashless infrastructure, greater usage of non-cash modes of payments and making <\/span><b>Aadhaar <\/b><span style=\"font-weight: 400;\">based payments more widespread.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The budget proposed to ban all cash transactions above Rs 3 lakh, in line with the <\/span><span style=\"font-weight: 400;\">\u00b7<\/span><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Aadhaar pay, a merchant version of <\/span><b>Aadhaar-Enabled Payment System (AEPS),<\/b><span style=\"font-weight: 400;\"> will be launched soon to enable those who do not have debit cards, mobile wallets and mobile phones to make digital payments.<\/span><\/li>\n<\/ul>\n<p><b>How is Government dealing with the Issue related to check crimes in financial sector?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>The Information Technology Act, 2000<\/b><span style=\"font-weight: 400;\"> has recently been amended to meet challenges in cybercrime, the amended Act is yet to come into force, it has introduced two important provisions that have a strong bearing on the legal regime for data protection.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Supreme Court said the introduction of a <\/span><b>\u201ccarefully structured\u201d<\/b><span style=\"font-weight: 400;\"> data protection regime and its contours were matters policy matters to be considered by the Centre.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government has already indicated in the court that the committee would be framing a data protection Bill similar to the <\/span><b>\u201ctechnology-neutral\u201d<\/b><span style=\"font-weight: 400;\"> draft Privacy Bill submitted by an earlier expert committee led by former Delhi High Court Chief Justice A.P. Shah to the Planning Commission of India in 2012.<\/span><\/li>\n<\/ul>\n<p><b>Ratan P.Watal committee on Digital Payment:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Committee on Digital Payments headed by Ratan P. Watal has submitted its final report to the Union Finance Ministry.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">It was notified in 2016.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">It was tasked to review existing payment systems in the country and recommend appropriate measures for encouraging Digital Payments.<\/span><\/li>\n<\/ul>\n<p><b>Key recommendations:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The Committee has recommended medium term strategy for <\/span><b>accelerating growth of Digital Payments in India.<\/b><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">It also <\/span><b>recommends inclusion of financially and socially excluded groups<\/b><span style=\"font-weight: 400;\"> and assimilation of emerging technologies in the market.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It calls for need of <\/span><b>safeguarding security of Digital Transactions<\/b><span style=\"font-weight: 400;\"> and providing level playing to all stakeholders and new players who will enter this new transaction space.<\/span><\/li>\n<\/ul>\n<p><b>CERT-In<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>Indian Computer Emergency Response Team<\/b><span style=\"font-weight: 400;\"> (CERT-In) is an office within the Ministry of Electronics and Information Technology. It is the nodal agency to deal with cyber security threats like hacking and phishing. It strengthens security-related defence of the Indian Internet domain. In March 2014, CERT-In reported a critical flaw in Android Jelly bean&#8217;s VPN implementation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In December 2013, CERT-In reported there was a rise in the cyber attacks on Government organisations like banking and finance, oil and gas and emergency services. It issued a list of security guidelines to all critical departments<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Legal steps to guard digital payments:\u00a0 Context: The Home Ministry has asked banks and e-wallet firms to furnish details of the extent of financial fraud reported in the past one year as digital transactions picked. Introduction: \u00a0The use of mobile wallets and online transactions has spiked since demonetisation. \u00a0A high-level committee of the Ministry convened&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/legal-steps-to-guard-digital-payments\/\">Continue reading <span class=\"screen-reader-text\">Legal steps to guard digital payments:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34344","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704708686},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34344"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34344\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}