Lok Sabha Question No. 2292 (UNSTARRED), answered on 2020-03-04
Subject: Transaction Fraud
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: C. R. Patil

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 2292

TO BE ANSWERED ON: 04.03.2020

## TRANSACTION FRAUD

## 2292 SHRI C.R.  PATIL:

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

- (a)  whether the Government has taken note of the reported transaction frauds in online payment gateway App in Delhi and if so, the details thereof and the reaction of the Government thereto;
- (b)  whether many app based services are popular in the country which provides payment gateway alongwith the different types of services and if so, the details thereof;
- (c)  whether car aggregators apps charge arbitrarily in the name of surge pricing and if so, the details thereof and reaction of the Government thereto; and
- (d)  the steps taken/being taken to make these App based services more transparent in wider public interest?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI SANJAY DHOTRE)

(a)  and  (b):      Payment  gateways  are  entities  which  provide  technology  infrastructure  to  process  online payment  transactions,  facilitate  e-commerce  and  facilitate  merchants  to  connect  with  acquirers.  Many  app based services which provide for electronic payment transactions, utilize the services of payment gateways to complete payment transactions. Presently such payment gateways are not directly regulated by the Reserve bank of India (RBI). In this regard the RBI has brought out a Discussion Paper on Guidelines for Payment Gateways and Payment Aggregators that brings out various issues relating to their operations including those related to security and this paper is available https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=943.

With regard to frauds in financial transactions such as through cards, internet banking etc., the data on frauds reported is available at the website of the National Crime Records Bureau (www.ncrb.gov.in). Among other measures such as educating consumers and promoting awareness, the RBI has taken the following specific initiatives to limit the liability of the consumers who are victimized by frauds:

- (i))     Limiting Customer Liability on Unauthorized Electronic Banking Transactions: RBI has issued circular  no.  DBR.No.  Leg.BC.78/09.07.005/2017-18  dated  July  06,  2017  limiting  the  liability  of customers on unauthorized electronic banking transactions.
- (ii))     Limiting Customer Liability in Unauthorized Electronic Banking Transactions in PPIs issued by Authorized  Non-banks: RBI  has  issued  circular  no.  DPSS.CO.  PD.  No.1417/02.14.006/2018-19 dated  January  04,  2019  limiting  the  liability  of  customers  in  unauthorized  electronic  banking transactions in PPIs issued by Authorized Non-banks.

(c)  and  (d): Transportation  by  Road  is  a  State  Subject  under  the  Seventh  Schedule  to  the  Constitution  of India. Ministry of Road Transport & Highways had constituted a committee to look into the various permits and  formulate  a  draft  scheme.  The  Committee  submitted  the  report  proposing  taxi  policy  guidelines  to promote urban mobility in the month of December, 2016. The report has been accepted by the Government.

Copy  of  the report is available on the website of the Ministry  of  Road  Transport  &  Highways (www.morth.nic.in ). It has been shared with the States.

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