With the demonetization of 500 and 1000 notes every section of society is affected. With the cash crunch faced by everyone all the small ,big businesses and individuals are doing digital payments using available platforms. There is no doubt that the digital payments will be increased in the future and there is urgent need to regulate this space to better serve the people.
Why regulation is needed :
- Digital payment is the next big thing in India which has many vulnerabilities and it can not be left opened without regulation
- To assure people and business community, digital payments must be secure,efficient and reliable which will be guaranteed by regulations
- To curb the arbitrary decisions by the digital payments service providers there must be formal way of regulating them
How can we regulate it:
- Parliament should enact a law to decide how digital payments should and should not take place
- An agency to monitor the digital payments should be established with the financial and cyber security experts
- RBI and government should release the circulars and the guidelines from time to time to users and service providers on the usage of digital payments
Digital payments is a disruption that will change how the payments will be made in India. With appropriate regulations , we can avoid any crisis that can arise due to this new payment mode.