Draft rules for PPIs released!
Q. Which of the following are prepaid payment instruments?- Published on 10 Mar 17a. Mobile wallets
b. Smart cards
c. Paper vouchers
d. All of the above
ANSWER: All of the above
The government has released draft guidelines for transactions carried out through pre-paid instruments like mobile wallets, smart cards and paper vouchers.
Feedback was also sought from numerous stakeholders. The Draft IT (Security of Prepaid Payment Instruments) Rules 2017 has been designed to ensure integrity, security and confidentiality of electronic payments through PPI.
MeitY has formulated draft rules for security of PPI under provisions of IT Act 2000.
Rules entail PPI should ensure end-to-end encryption of data exchange. E-PPI issuers assist customers with regard to security when it comes to PPI.
Each e-PPI issuer will have privacy policy and terms and conditions for use of payments on its website and mobile app. Both should be in simple language to promote easy understanding.
Rules mandate that each PPI company will have privacy policy posted on its website. A Chief Grievance officer whose contact details will have to be prominently displayed on the website, should act within 36 hours and resolve complaints within one month from date of complaint receipt.
A mechanism needs to be established for monitoring, handling and follow-up of cyber incidents and breaches.
