Government mulls insurance cover for digital transaction frauds

Why in news ?

The government is considering based on the recommendations of the Chandrababu Naidu committee on digital payment security, including insurance cover for the victims of fraudulent digital transactions.

Recommendations

  • Interim report suggested several measures for digital payment security, including an insurance scheme to cover losses incurred in digital transactions on account of fraud, etc.
  • In order to address the apprehension of the general public in adopting digital payments, the scheme should target low-ticket transactions to cover the vulnerable sections like small merchants, farmers etc.

Fraudulent digital transaction

According to the report submitted in the Parliament

  • Number of fraudulent digital transactions in comparison to the total number of digital transactions was negligible and the government was taking steps to curb those frauds.
  • Around 1,200 crore digital transactions take place annually in the country. Of these, between 0.005 per cent and 0.007 per cent are fraudulent transactions.
  • Prepaid payment instruments, including e-wallets, the Reserve Bank of India (RBI) has started maintaining provisional data of fraudulent transactions.

Source : The Hindu

GS II : Government policies and interventions for development in various sectors and issues arising out of their design and implementation

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