Fear of frauds in transactions

India is still very far away from being a less-cash economy and security issues around digital payments system needed to be addressed to make the mode more acceptable, digital expert Nandan Nilekani said on 13 Mar 2019.

Nikelani, chairman of RBI Committee on Digital Payments, said that in the last couple of years, there has been an expansion of forms of digital payments including cards and there are more retail points accepting cards as well as point of sale (POS) devices.

Addressing the “2019 India Forum”, he said “We are still a very long way from really getting into a less-cash economy, and the reason for that is, cash as you know is very convenient, anybody accepts cash and there is no transaction cost in cash.

“We are seeing a secular increase in the number of transactions,” the Press Trust of India quoted Nilekani as saying.

Flagging security-related issues related to digital transactions, Nilekani stressed on making the card payments infrastructure more secure in a bid to compete with cash-based system.

“I think increasing number of transactions, at the same time less security issues, less fraud issues, less disputes… could be what we need to see,” he told the forum through video conference. The forum was organized by the PCI Security Standards Council. fiinews.com