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| New Delhi

Insurance cover against cybercrimes among plans to make digital payments safer, popular

Insurance cover against cybercrimes among plans to make digital payments safer, popular
A legal agency may be roped in to examine the concerns around digital payments and advise on the need for a new law.
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The ministry of electronics and information technology (MeitY) is drafting a policy on mobile wallets and mobile banking aimed at minimising risks of cyber frauds. To instill confidence among users of digital transactions, the government is also considering insurance protection against cybercrimes.

Recently, minister of electronics and IT Ravi Shankar Prasad met bankers and executives of mobile wallet companies to discuss ways of making digital transactions safer.

The guidelines will soon be put up for public consultation, a senior ministry official said on condition of anonymity.

For insurance cover, MeitY will play the role of facilitator as mobile wallets are regulated by the Reserve Bank of India and insurance companies are controlled by the Insurance Regulatory and Development of India, another official said. “Since the society is moving towards a digital economy post demonetisation, there has to be enough safeguards for consumers using digital technologies for payments.”

A legal agency may be roped in to examine the concerns around digital payments and advise on the need for a new law.

The government has already set up a separate digital payments division under Indian Computer Emergency Response Team (CERT-In) to monitor and strengthen digital payments infrastructure. CERT-In, cybersecurity arm of MeitY, monitors and issues alerts on cyber threats such as hacking and phishing, and protects Indian internet domain.

To enhance cyber security, the ministry has appointed chief information security officers (CISO) in all government departments and ministries after Prime Minister Narendra Modi announced demonetisation drive on 8 November 2016. Digital payment transactions, particularly via mobile wallets, picked up pace in December.

A national cyber coordination center is being built with an investment of about Rs.900 crore for real-time threat assessment and safeguard of India’s cyberspace.

 

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