RBI Working on Regulations to Curb Fraud in Electronic Transactions

The RBI is running to put in region a regulatory framework to deal with customer criticism and legal responsibility problems springing up out of frauds in electronic transactions, authorities said Tuesday.

“the matter is being similarly examined by way of the RBI to install vicinity a regulatory framework for addressing consumer criticism and legal responsibility problems springing up out of such frauds,” Minister of kingdom for Finance Jayant Sinha stated in the course of the query Hour inside the Rajya Sabha.

He stated the Banking Codes and standards Board of India (BCSBI) had in 2014 pop out with a recommendation of limiting the purchaser liabilities in case of frauds taking location through electronic channels.

Replying to supplementaries, Sinha stated there has been too much of coins transaction within the Indian economy.

“87 percentage transaction happens in India in cash, which is not the case in different countries. a lot use of cash transaction isn’t exact…this increases price of managing except inconvenience,” he said and underlined government’s committment to inspire cashless monetary transactions.

The RBI in its ‘price system imaginative and prescient document 2012-15’ for ushering in a much less coins economic system advised drawing up of a coverage framework setting up roles and duties of banks and customers in electronic transactions to minimise fruads, restoration duties and zero legal responsibility protection to boom patron confidence.

The file had also cautioned drawing up a method for disincentivising utilization of cheques above a sure threshold restrict by means of customers and corporate which might also encompass prescribing a cut off restrict for cheques cleared via clearing residence preparations.

Sinha said a white paper changed into located through the department for public remarks in 2013. “based totally on the response from the public, the department has now not initiated any similarly movement”.

Sinha further said the government had come out with a white paper on disincentivising paper cheques and sought public feedback on it.

“but, the comments were now not very encouraging. The fees levied for digital transactions operated via the financial institution are low and obvious,” he added.

Sinha similarly said that countrywide bills business enterprise of India (NPCI) has been given in-precept approval to be the Bharat invoice price important Unit (BBPCU) beneath Bharat invoice charge machine (BBPS), an included invoice payment machine.

BBPS is an integrated invoice price gadget to characteristic as a tiered structure for operating bill fee machine in India with a single emblem image, offering comfort of ‘anytime everywhere’ bill fee to customers.

the present scope of BBPS will encompass application bill bills including power, water, gasoline, telephone and Direct-to-domestic (DTH).

“we are brining a revolution in virtual fee,” Sinha stated listing various projects taken via the authorities to bring down the level of cash transactions within the u . s .. “while we’ve cash in circulation in economy, we create a drag. If we circulate to digital, we are able to dispose of those problems,” he introduced.

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