 "Jayant Sinha")
The Reserve Bank of India (RBI) is looking to put in place a regulatory framework to check fraudulent electronic transactions. This is expected to fix the liability issues arising out of such transactions, the government informed Parliament on Tuesday.
The Banking Codes and Standards Board of India had in 2014 come out with a recommendation to limit the customer’s liabilities in such cases, Minister of State for Finance Jayant Sinha said in the Rajya Sabha.
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Noting that 87 per cent of the transactions in the economy are still in cash, Sinha said the government underlined the government's commitment to encouraging cashless financial transactions. “So much of cash transaction is not good. This increases the cost of handling besides causing inconvenience.”
RBI in its Payment System Vision Document 2012-15 for ushering in a cashless economy suggested drawing up of a policy framework to establish the roles and responsibilities of banks and customers in electronic transactions to minimise cases of fraud, fix responsibilities, and provide zero-liability protection to customers.
Sinha said a white paper was released for public comments in 2013. “However, the comments were not very encouraging. The charges levied for electronic transactions operated by the bank are low and transparent,” he added.
On a question on the estimation of black money in the economy, Sinha said there was no official estimation of the amount of unaccounted money sent to foreign countries by Indians.
“Determination of black money sent to foreign countries by Indian persons is a subject matter of investigation and other follow-up actions by relevant law enforcement agencies, including the income-tax department, Enforcement Directorate, Central Bureau of Investigation, etc, which is ongoing... The details regarding the amount of money involved in such cases are not maintained centrally,” Sinha said in a written reply to the Rajya Sabha.
