There has been a significant increase in the digital transactions & digital modes of payment in the recent years. Demonetization, movement restrictions during COVID-19 contributed significantly to this increase. The increase in transactions is also resulting in an increase in financial fraud through the online means. To help customers, the RBI recently released a ‘BE(A)WARE’ booklet listing the common modus operandi of fraudsters and the general precautions to be taken by customers.
In recent years, there has been a substantial increase in the usage of a digital or online medium for financial transactions. This was made possible with a combination of the availability of data & smartphones at lower prices, the introduction of easy & convenient modes of payments such as UPI & IMPS, and the explosion of payment apps. The ease & convenience of making such transactions has also contributed to this increase.
Further, the government has been incentivizing multiple modes of digital transactions. In the aftermath of demonetization, the government had announced a slew of measures for the promotion of digital transactions. The government has recently approved an incentive scheme to promote RuPay Debit cards and low value [up to Rs. 2,000) BHIM-UPI transactions in the country. The scheme is aimed at reimbursing the merchant discount rate (MDR) to banks, which was brought down to zero in December 2019 for UPI transactions up to Rs. 2,000.
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