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Draft rules for digital payment to be released soon for public consultation: Ravi Shankar Prasad

Economic Times:  February 13, 2017

New Delhi: 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 on Friday that the paper will be put up for public consultation soon.

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 demonitisation 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.

"Two years ago, the Narendra Modi government promised that this government will be known for building digital highways, we are clearly moving in that direction," said Prasad. India is becoming a hub of mobile manufacturing with a total of 72 manufacturers making their presence in the country. Till date, 42 mobile phones and 30 components makers have commenced manufacturing operations in the country. “India is changing from consumer of electronics to a manufacturer of electronics,” Prasad said.

On recent concerns raised by Donald Trump-led US government about the use of H-1B visa by Indian IT companies, Prasad said that the ministry was closely coordinating with the Ministry of External Affairs, which has communicated its stand to their counterparts in the US administration.

We are coordinating with the companies together with Nasscom and we need to take a coordinated approach on the visa issue, he added. “IT companies and entrepreneurs have done a tremendous job. Indian companies in the US pay $20 billion in tax to the US government,” Prasad said. Companies have created more than 4,00,000 employment opportunities in America while providing high quality services Fortune 500 companies. “Hence, it can be expected the problems will be resolved soon,” Prasad said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.