Centre issues draft rules on e-wallet payments

The rules are meant to ensure integrity, security and confidentiality

March 09, 2017 10:16 pm | Updated 10:16 pm IST - CHENNAI

The Centre has issued draft rules to ensure integrity, security and confidentiality of electronic payments made through prepaid payment instruments (PPIs), popularly called e-wallets. The draft rules, on which the Ministry of Electronics and Information Technology has sought public comments, make it mandatory for e-PPI (electronic pre-payment instrument) issuers to develop an information security policy that ensures that the systems operated by them are secure.

The Information Technology (Security of Prepaid Instruments) Rules, 2017, define an e-PPI issuer as a “person operating a payment system issuing prepaid payment instruments to individuals/organisations” under the aegis of Reserve Bank of India. The rules make it compulsory for e-PPIs to publish on their websites and mobile applications both their ‘privacy policy’ and terms for use of their payment systems. The draft also details the requirements of a privacy policy. The rules mandate that e-PPIs should carry out risk assessment to spot security risks and also ensure adequate due diligence is done before issuing PPIs.

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