The government is planning to come out with a standard protocol for e-wallet companies on ways to tackle financial fraud, keeping in mind the heightened risk of cyber fraud with increase in online transactions after demonetisation. As per Times of India, the finance ministry has been told to work on Digital Payments Act in order to regulate the entire gamut of e-payments.
Home Minister Rajnath Singh on Tuesday hold an highlevel meeting to discuss ways to tighten anti-cyber fraud norms. Trends related to online frauds were also discussed at the meeting. According to the RBI data, the online transaction fraud grew from Rs 255 crore in 2013-14 to Rs 998 crore in 2016-17. It is expected to increase to Rs 2,500 crore in 2017-18, the paper added.
According to officials, an inter-ministerial panel headed by the home minister will also study existing laws to fight cyber crimes and then propose new legislation. they added that the need was felt after increase in the number of complaints, mostly post demonetisation. The proposed legislation will not only deal with punishment and fine for those found guilty, it will find out ways to fix responsibility in cases where digital transactions land in any dispute.
In November 2016, when demonetisation was announced, average daily online transactions were 22.4 million, which increased to 23 percent in May this year. Banks and other agencies reported nearly 16,468 cases if online fraud to the central bank in 2015 -16, which was up from 13,083 cases in 2014-15. However, the NCRB data put the number of online frauds at 12,317 last year, Times of India report said further.