OMBUDSMAN FOR DIGITAL TRANSACTION

On 1st. July 2015 Govt Of India launched Digital India campaign. The motto is Power to Empower. The Govt. targeted to transfer maximum financial & non financial transaction on digital platform. Govt. has also taken initiatives to moving towards cashless economy. In our country the cash handling cost is approx. 0.25% of GDP.

- Satish Kumar Pathak

Cash transactions involves risk, inconvenience and monitoring problem. On 11th April 2016, NPCI (National Payment Corporation Of India) started new digital transaction gateway as UPI (Unified Payment Interface ). After Nov 2016, demonetization the volume of digital transaction increased many folds. The Govt.of India/ RBI announced many incentive to promote digital transactions such lower the MDR(merchant discount rate ), incentive for digital transactions in addition to DBT. Govt. of India taken initiative and 4G/3G network is made available in remote area. As a result of these initiatives the digital transactions increased many fold as shown in table below.

Data of transaction on Digital Platform

The digital transaction in volume term recorded a growth(Y to Y) of 38.06 % during 2017-18 and 70.46% during 201819. In value term the growth (Y to Y)is 17.51 % in 2017-18 and 20.39% in 2018-19.It is excepted that the digital transactions will increase more than4 times from Rs.2069 cr in Dec-18 to Rs.8707 cr in Dec-2021. RBI also push for 44% of debit card transaction on POS in next two years.

Many non-banking entity/organization come with state of the art technology and providing the facilities of transaction through digital platform. The main player of the digital platform are Paytm, PhonePe, Google Pay, BHIM. As the volume of digital transaction increases, the threat of digital fraud also increases. The number of complains, relating to fraud in digital transaction increased many fold.