With digital payments witnessing manifold growth post demonetisation, India needs separate digital payment laws and courts along with an “appropriate legal framework”, CMAI Association of India (CMAI) today said.
CMAI, which represents companies across telecom, ICT and cybersecurity segments, said an appropriate legal framework is needed to to protect consumers if case they lose money during digital transactions.
“India does not have proper laws in this regard as of now. The only remedy available is under Information Technology Act, which largely deals with cyber breaches. All cases of money lost in digital payments may not fall in the category of cyber thefts/breaches,” CMAI President NK Goyal said.
With proliferations of digital payments across India in big and small towns, there may be widespread cases of small amounts here and there throughout the country, he added. “To address them in timely manner, CMAI requests that there is need for separate digital payment laws and digital payment courts across India,” he said.
The body also urged the government to promote domestic manufacturing of Point of Sale (PoS) machines and its software development.
“Government reports say during next few months 20 lakhs new PoS machines will be added to 15 lakhs existing ones. When crores of people are joining digital payments movement daily, safety of data remains paramount which can be ensured only by pushing indigenous manufacturing of PoS machines,” he said.
Stating that digital payments have gone up 300 per cent since demonetisation, Goyal said: “We cannot depend on foreign manufacturers if we want to make our economy cashless”. A majority of PoS machines currently are imported from the US, Europe and China.
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“There is a need for legal framework for data storage, data protection… draft legal framework should also include standards on refunds, complaint redressal system, cash backs, compliance to various policies and procedures need to be displayed on company’s website details of complaints received/addressed, money refunded and action taken on regular basis, cash back policy etc,” he said.
CMAI has also urged for putting in place an “appropriate and robust mechanism” for reporting losses and recovery of money lost/theft/frauds in digital payments