Lok Sabha Question No. 737 (UNSTARRED), answered on 2017-12-20
Subject: Individual Data Protection
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: PONNUSAMY VENUGOPAL, ELUMALAI VELLAIGOUNDER

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO 737

TO BE ANSWERED ON 20.12.2017

## INDIVIDUAL DATA PROTECTION

## 737    DR. P. VENUGOPAL: SHRI V. ELUMALAI:

Will the Minister of Electronics and Information Technology be pleased to state:

- (a)  whether  amid  growing  concerns  over  security  of  financial  data  on  electronics payment/digital wallet platforms the Government has put together draft rules aimed at safeguarding consumer interest;
- (b)   if so, the details thereof and the action taken in this regard so far;
- (c)    whether  the  digital  wallets  have  seen  a  huge  uptick  in  transactions  after  the Government's demonetization move last year;
- (d)   if so, the details thereof; and
- (e)   whether the Government has also suggested every digital wallet company appoint a chief grievance officer whose details should be prominently made available on their websites and if, the reaction of these companies thereto?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI ALPHONS KANNANTHANAM)

(a) and (b) : Ministry of Electronics & Information Technology (MeitY) in March 2017 formulated draft rules on Security of Prepaid Payment Instruments (PPI) under Information Technology Act, 2000. The objective of the proposed rules was to ensure adequate  integrity, security and  confidentiality of  electronic  payments  effected through  electronic  prepaid  payment  instruments.  The  draft  rules  had, inter  alia , proposed  that  Every  e-PPI  issuer  shall  designate  a  Grievance  Officer  for  receiving complaints from customers and publish his name and contact details on its website. The draft rules were published on MeitY website for inviting comments from public at large and all stakeholders.

Subsequently, Reserve Bank of India (RBI) on 20.3.2017 had prepared draft Master Direction on Issuance and Operation of Prepaid Payment  Instruments,  which encompassed  the  provisions  of  the  draft  rules  on  Security  of  Prepaid  Payment Instruments proposed by MeitY. Therefore  MeitY is not issuing any rules regarding this.

(c)  and  (d):    Yes,  Sir.  The  data  received  from  RBI  shows  that  transaction  through digital wallets (mobile wallets) increased after demonetization. The volume and valuewise figure is  as mentioned below:

| Growth of Digital Transaction since Demonetization in VOLUME : Oct, 2016 to Dec, 2017 ( Figures in Crores)   | Growth of Digital Transaction since Demonetization in VOLUME : Oct, 2016 to Dec, 2017 ( Figures in Crores)   | Growth of Digital Transaction since Demonetization in VOLUME : Oct, 2016 to Dec, 2017 ( Figures in Crores)   |
|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Digital Wallet                                                                                               | Digital Wallet                                                                                               | Digital Wallet                                                                                               |
| Month-Year                                                                                                   | Volume (Figures in Crores)                                                                                   | Value (Figures in Rupees - Crores)                                                                           |
| Oct-16                                                                                                       | 9.96                                                                                                         | 3,385                                                                                                        |
| Nov-16                                                                                                       | 13.81                                                                                                        | 3,306                                                                                                        |
| Dec-16                                                                                                       | 21.31                                                                                                        | 7,448                                                                                                        |
| Jan-17                                                                                                       | 26.17                                                                                                        | 8,353                                                                                                        |
| Feb-17                                                                                                       | 24.7                                                                                                         | 6,911                                                                                                        |
| Mar-17                                                                                                       | 30.75                                                                                                        | 7,312                                                                                                        |
| Apr-17                                                                                                       | 32.09                                                                                                        | 7,442                                                                                                        |
| May-17                                                                                                       | 24.17                                                                                                        | 7,194                                                                                                        |
| Jun-17                                                                                                       | 22.16                                                                                                        | 5,310                                                                                                        |
| Jul-17                                                                                                       | 23.55                                                                                                        | 6,934                                                                                                        |
| Aug-17                                                                                                       | 22.54                                                                                                        | 7,262                                                                                                        |
| Sep-17                                                                                                       | 19.95                                                                                                        | 8,154                                                                                                        |
| Oct-17                                                                                                       | 20.12                                                                                                        | 8,660                                                                                                        |
| Nov-17                                                                                                       | RBI Data not published                                                                                       | RBI Data not published                                                                                       |
| Dec17(Till 18th )                                                                                            | RBI Data not published                                                                                       | RBI Data not published                                                                                       |

(e)  :  RBI  has  issued  Master  Direction  on  Issuance  and  Operation  of  Prepaid  Payment Instruments on 11.10.2017. Customer Protection and Grievance Redressal Framework is available at the RBI website link:

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/58PPIS11102017A79E58CAEA28472A945 96CFA79A1FA3F.PDF

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