Friday, 2 December 2016

No laws in India to protect customers if they lose money during digital transactions

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India lacks laws to protect consumers if they lose money during digital transactions even as the government pushes for a less-cash economy after it withdrew Rs 500 and Rs 1,000 currency notes as the legal tender.

The Modi government's demonetisation move might have warranted an increase in transaction activity on digital wallets, but measures to ensure the underlying cyber security parameters for digital payments is still kept largely under the ambit of the Information Technology Act.

"We don't have any dedicated law on digital payments. That's very important to grant complete legality and remove and doubts and clarifications pertaining to legal efficacies and legal validity of digital payments," says Pavan Duggal, an advocate in the Supreme Court specialising in cyber law.

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