Demonetization effect: e-payments saw 195% jump, govt to release draft rules for digital payment for public consultation soon

Demonetization effect: e-payments saw 195% jump, govt to release draft rules for digital payment for public consultation soon

After the govt’s big demonetization push, electronic payments spiraled in the country. With the increasing rise in the digital payments especially new age methods such as wallets, the ministry of electronics and IT is working on draft rules for digital payments which will deal with "consumer interests" and "security concerns." Ravi Shankar Prasad, union minister for electronics and IT said.

Currently, digital payment companies are governed by Reserve Bank of India and these rules will be formed in consultation with the Central Bank. "The idea is that the consumer interest is protected and we should grow this business in an orderly manner," Aruna Sundararajan, secretary, ministry of electronics and IT said. She added that three rounds of workshop has already happened by the wallet companies and other stakeholders and some "gaps" have been identified. "If wallets have to grow as an instrument, issues such as what is the liability of the service provider, how the data is being protected, what the grievance redressal means have to be addressed," she added. The government's demonetization exercise announced on November 8 has given a huge push to digital payments in the country. Prasad also said that electronic payments saw an increase of 195% in terms of volume and 54% by value between October-¬January. Aadhaar enabled payments, which would require just a person's biometric would be started later this month. The paper that is expected to address all aspects of electronic payments will be put up for public consultation soon.