In the times of coronavirus, online shopping for essentials is now the order of the day, all thanks to digital payments. There are various types and modes of digital payments. Some of these include the use of debit or credit cards, internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service, Bank prepaid cards and mobile banking.
Digital payments have emerged as an important tool for advancing financial inclusion because it reduces the cost of providing financial services to poor people and increases the safety and convenience of using savings, payments, and insurance products.
Digital Payments are conducted over the internet and mobile channels and hence, any payment that is sent online or through mobile computing and internet-enabled devices can be termed as digital payments.
However, though people are being encouraged to make online payments for all services so that one does not need to touch currency notes, there are financial risks attached with digital payments. The vulnerable consumers such as the low income group that are often beneficiaries of financial schemes could be victims of online fraud. Customers of mobile wallet are not liable if proved that transaction is unauthorised.
RBI had issued consumer protection rules for mobile wallets. The RBI also issued guidelines limiting Consumer’s liability in case of unauthorised transactions that have taken place from their mobile wallets.
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