mobile wallets
Mobile Wallets

Last year, the Indian Government, in a bid to counter the growing threat from terrorism, black money and fake currency announced demonetisation of old currency notes in the country. This decision affected the cash flow in the country and people were not able to spend money because of lack of paper currency. Later, the government started to encourage people to perform digital transactions instead of paper transactions. This proved to be a huge benefit for the apps like Paytm who already had features like e-wallet and online payments.

Now, the Indian Government has issued draft rules(Security of Prepaid Payment Instruments) Rules 2017 to all the companies who have mobile wallets for the security of the consumers and their private as well as financial data.

The rules state that each of the mobile wallet companies has to post its privacy policy on their respective website. The rule also states that the company has to appoint an chief grievance officer with the officer’s details posted on the website.

The grievance officer appointed by the company will have to “act upon” any complaint within 36 hours and “close” it in a month’s time. The draft also states the companies to ensure they have enough safety checks in place to avoid any hacking attacks and report any attack if it has taken place.

According to the draft, the details of the chief grievance officer should include his/her name and contact details as well as security practices and procedures that are being performed.

The draft by the government states that the policy should include details such as consumer information collected, its uses, period of retention of information, purposes for which information can be disclosed and to whom with the government’s law agencies.

“Every wallet shall ensure that end-to-end encryption is applied to safeguard the data exchanged and shall retain data relating to electronic payments only till necessary.” the draft added.

“CERT-In may require e-PPI issuers to notify customers of cyber security incidents or breaches if the incident or breach is likely to result in harm to the customers,” the draft read.

This measures from the Indian Government come after the recent data thefts due to increase in online transactions in the country. The Government is ensuring prompt customer service and security to the customers through this draft. The Government has also asked for suggestions on the draft till 20th March after which it will start to finalize this drafts. Let us know what are the advantages and disadvantages of online transactions in the comment section below.