New Delhi: Is all this shoving the country towards a cashless economy really safe? That’s the question thrown up by a Parliamentary Standing Committee. Is data transfer on these new ‘pockets’ and ‘wallets applications really safe, or will new users find that their bank accounts are broken into by hackers? Do we have proper laws and guidelines in place to deal with this new ‘digital-cash’ system? Are citizens who use cyber cash really protected from fraud?

Amid the government’s intense push for cashless economy, a Parliamentary Standing Committee today voiced concern over security of digital transactions and pressed for overhauling the legal framework for the same besides creating awareness about safe online practices.

The Standing Committee on Information Technology (IT), chaired by BJP MP Anurag Thakur, discussed the issue of digital transactions at length at its meeting here (Jan 5).

Officials from the Ministry of Electronics and Information Technology (IT) and the TRAI briefed the Committee on the issue of Digital Payments and Online Security of Data and said the government is working on strengthening the cyber security infrastructure for digital transactions, says a PTI report.

At the meeting, discussions focussed on protection of a large number of first-time consumers and merchants who will enter into the digital economy, they said.

The Committee raised concern over the security of digital transactions.

This assumes significance in view of the government’s intense push for a less-cash economy ever since Prime Minister Narendra Modi announced scrapping of Rs 1000 and Rs 500 denomination notes with effect from November 8 last year.

During the meeting, there was emphasis on the need to overhaul the legal framework for digital transactions, improving network connectivity, ensuring security of data and creating awareness about safe online practices, the sources said.

  demonetization, economy, India