Indian Gov. Considering Imposition of Digital Cess on Every Digital Transaction
The Government of India is considering to impose a ‘security fee’ as digital cess for every digital payment. According to a news website The Print, the Department of Financial Services has recently proposed a token amount on every cashless transaction in order to curb the online fraud in digital payments.
The Department of Financial Services (DFS), along with the Ministry of Electronics and Information Technology (MeitY) and the home ministry, are learnt to be preparing such a proposal.
Nasscom Internet Council head Prasanto K. Roy said that a fee on every digital transaction could be aimed at starting a fund to create better infrastructure to secure digital transactions, like the Swachh Bharat cess.
“The problem is not that there is no money to solve these security issues. Who implements these security transaction issues? It will be the transaction providers, the PPIs, banks, MasterCard, Paytm. They’re not saying that they don’t have money to do that. Some of the issues are all digital transactions are heading towards mobile and we’re going down this pyramid of lower literacy users who are not aware of security issues and services. The biggest problem so far has been someone calling you up and saying I need to verify who you are and I’m going to send you a code and you give it to me,” Prasanto K Roy, VP and head of Nasscom Internet Council, told Business Standard.
The government launched a myriad of digital payments solutions including UPI, Aadhar Pay, BHIM, Bharat QR etc. as part of its digitising economy campaign. As per RBI data, digital transactions — that leave behind a deep data footprint—grew by over 13% in October over September. At the same time, CERT-In advisories show, the digital payments infrastructure is increasingly coming under attack.