May 3, 2016 4:35:04 pm
The RBI is working to put in place a regulatory framework to address customer grievance and liability issues arising out of frauds in electronic transactions, Government said on Tuesday.
“The matter is being further examined by the RBI to put in place a regulatory framework for addressing customer grievance and liability issues arising out of such frauds,” Minister of State for Finance Jayant Sinha said during the Question Hour in the Rajya Sabha.
He said the Banking Codes and Standards Board of India (BCSBI) had in 2014 come out with a recommendation of limiting the customer liabilities in case of frauds taking place through electronic channels.
Replying to supplementary questions, Sinha said there was too much of cash transaction in the Indian economy.
“87 percent transaction happens in India in cash, which is not the case in other countries. So much use of cash transaction is not good…this increases cost of handling besides inconvenience,” he said and underlined government’s commitment to encourage cashless financial transactions.
The RBI in its ‘Payment System Vision Document 2012-15’ for ushering in a less cash economy suggested drawing up of a policy framework establishing roles and responsibilities of banks and customers in electronic transactions to minimise frauds, fix responsibilities and zero liability protection to increase customer confidence.
The document had also suggested drawing up a strategy for dis-incentivising usage of cheques above a certain threshold limit by customers and corporate which may include prescribing a cut off limit for cheques cleared through clearing house arrangements.
Sinha said a white paper was placed by the department for public comments in 2013.
“Based on the response from the public, the department has not initiated any further action”.
Sinha further said the government had come out with a white paper on dis-incentivising paper cheques and sought public comments on it.
“However, the comments were not very encouraging. The charges levied for electronic transactions operated by the bank are low and transparent,” he added.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.