SIFL https://www.sifl-training.com Fri, 25 Aug 2023 12:33:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.2 https://www.sifl-training.com/wp-content/uploads/2021/10/ico.png SIFL https://www.sifl-training.com 32 32 RBI Digital Rupee https://www.sifl-training.com/2023/08/25/rbi-digital-rupee/ https://www.sifl-training.com/2023/08/25/rbi-digital-rupee/#respond Fri, 25 Aug 2023 12:33:00 +0000 https://www.sifl-training.com/?p=3672 Reserve Bank of India (RBI) has launched a pilot project for digital rupee (e₹) in 4 Indian cities viz. Mumbai, Delhi, Bengaluru and Bhubaneshwar on 1st December, 2022. The residents of these four cities can use the digital wallets which will issued by the partnering banks to exchange digital Rupees. State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank and IDFC First Bank are participating in the pilot project and are called as partnering Banks. These eight banks have joined the Pilot Project in two phases. This wallet can be downloaded on the Mobile or any other device.

The Digital rupee which is a digital currency, is virtual money and it will serve the same purpose and will have the same value as the physical currency. Thus, the value of 1 Digital Rupee will be equal to Rs. 1 in cash. Anyone can carry out digital rupee transactions with merchants and individuals. The digital rupee is issued by Reserve bank of India while the distribution of the digital rupee is undertaken by the participating banks or partnering banks. The Digital Rupee App is launched by these 8 banks.

These eight participating banks have launched their digital rupee app to make transactions more accessible. The process to buy & transact in digital rupee is as follows:

  1. Visit participating banks’ official app
  2. Register for e-wallet
  3. Selection for Closed User Group (CUG) for participation in the digital Rupee pilot project
  4. Load money in the e₹- wallet, similar to a physical wallet but in digital form from the account linked to the bank or UPI apps
  5. Transact using QR codes displayed at shops or malls to pay with an e-rupee.

The digital rupee issued by RBI is an electronic token and the digital rupee can be opted for both Person-to Person (P2P) to Person-to-Merchant (P2M) transactions. Through QR Codes

Characteristics of the Digital Rupee:

  • The e₹-R is in digital form but possesses all features of physical cash like safety, settlement finality, trust, etc.
  • The digital rupee is eligible to be converted to other forms of money like bank deposits without any interest.

The pilot project is to conduct a real-time assessment for the use of digital rupees for the retail transactions, distribution and to evaluate the different uses and aspects of the digital token.

Central Bank Digital Currency (CBDC) is different from cryptocurrency in all aspects but still it can be compared with crypto in fields of benefits. The notable advantage of CBDC (Digital Rupee) is that the digital rupees is accepted as legal tender and can be utilised for means of payment, safe deposits, etc.

Advantages of Digital Rupee (e₹-R wallet):

  • The CBDC (e₹-R wallet) is a sovereign currency issued by the RBI in accordance with their monetary policy.
  • Ease of conversion of digital money into cash or commercial bank money.
  • The digital rupee is a flexible legal tender and can be used even without having a bank account.
  • The e₹-R wallet cannot be destroyed by tearing apart, burning, or other physical damage.
  • Digital money is equal to paper currency. Hence, its life is long as your paper.
  • The e₹-R wallet is governed by Reserve Bank of India. Thus, it has a low risk of being volatile and provides security to its user.

Types of RBI digital rupee to be launched in India

Reserve Bank of India will have two types of digital rupee in India, namely Retail or general purpose (CBDC-R) and Wholesale (CBDC-W). Non-financial consumers, private sectors, businessmen, etc., can use CBDC-R, while the use of CBDC-W is restricted to selected financial institutions such as interbank transfers.

RBI launches as a pilot project the digital rupee in India to offer a safe and hazardless digital experience during monetary transactions.

The introduction of India’s Digital Rupee is more than a technological innovation; it’s a monumental leap towards a more efficient, secure, and accessible financial ecosystem. With the potential to revolutionize cross-border transactions, enhance financial inclusion, and drive economic growth, the Digital Rupee signifies India’s commitment to embracing digital advancements for the betterment of its citizens and the global financial landscape. As the digital currency era unfolds, India is poised to emerge as a trailblazer, setting new benchmarks for the future of money.

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The Digital Personal Data Protection Bill, 11th August, 2023. (Bhagat Singh Bisht) https://www.sifl-training.com/2023/08/22/the-digital-personal-data-protection-bill-11th-august-2023-bhagat-singh-bisht/ https://www.sifl-training.com/2023/08/22/the-digital-personal-data-protection-bill-11th-august-2023-bhagat-singh-bisht/#respond Tue, 22 Aug 2023 06:01:33 +0000 https://www.sifl-training.com/?p=3665 Digital Personal Data Protection Bill 2023 has set in motion a transformation in India’s data privacy landscape

The Bill protects digital personal data (that is, the data by which a person may be identified) by providing for the following: –

  1. The obligations of Data Fiduciaries (that is, persons, companies and government entities who process data) for data processing (that is, collection, storage or any other operation on personal data);
  2. The rights and duties of Data Principals (that is, the person to whom the data relates);and
  3. Financial penalties for breach of rights, duties and obligations.

The Bill also seeks to achieve the following:

  1. Introduce data protection law with minimum disruption while ensuring necessary change in the way Data Fiduciaries process data;
  2. Enhance the Ease of Living and the Ease of Doing Business; and
  3. Enable India’s digital economy and its innovation ecosystem.

The Bill is based on the following seven principles: 

  1. The principle of consented, lawful and transparent use of personal data;
  2. The principle of purpose limitation (use of personal data only for the purpose specified at the time of obtaining consent of the Data Principal);
  3. The principle of data minimization (collection of only as much personal data as is necessary to serve the specified purpose);
  4. The principle of data accuracy (ensuring data is correct and updated);
  5. The principle of storage limitation (storing data only till it is needed for the specified purpose);
  6. The principle of reasonable security safeguards; and
  7. The principle of accountability (through adjudication of data breaches and breaches of the provisions of the Bill and imposition of penalties for the breaches).

The Bill is concise and SARAL, that is, Simple, Accessible, Rational &Actionable Law as it—

  1. Uses plain language;
  2. Contains illustrations that make the meaning clear;
  3. Contains no provisos (“Provided that…”); and
  4. Has minimal cross-referencing.

Applicability:  The Bill applies to the processing of digital personal data within India where such data is:

  1. Collected online, or
  2. Collected offline and is digitized.
  3. It will also apply to the processing of personal data outside India if it is for offering goods or services in India.

Personal data is defined as any data about an individual who is identifiable by or in relation to such data.

Processing has been defined as wholly or partially automated operation or set of operations performed on digital personal data.  It includes collection, storage, use, and sharing.

Consent:   Personal data may be processed only for a lawful purpose after obtaining the consent of the individual.  A notice must be given before seeking consent.  The notice should contain details about the personal data to be collected and the purpose of processing.  Consent may be withdrawn at any point in time.

Consent will not be required for ‘legitimate uses’ including: (i) specified purpose for which data has been provided by an individual voluntarily, (ii) provision of benefit or service by the government, (iii) medical emergency, and (iv) employment.  For individuals below 18 years of age, consent will be provided by the parent or the legal guardian. Parental consent can be taken via government e-document wallet Digi Locker.  This may increase compliance cost for Social Media.

Rights and duties of data principal:  An individual, whose data is being processed (data principal), will have the right to:

  1. Obtain information about processing,
  2. Seek correction and erasure of personal data,
  3. Nominate another person to exercise rights in the event of death or incapacity, and
  4. Grievance redressal.

Data principals will have certain duties.  They must not

  1. Register a false or frivolous complaint, and
  2. Furnish any false particulars or impersonate another person in specified cases.
  3. Violation of duties will be punishable with a penalty of up to Rs 10,000.

Obligations of data fiduciaries:  The entity, determining the purpose and means of processing, (data fiduciary), must:

  1. Make reasonable efforts to ensure the accuracy and completeness of data,
  2. Build reasonable security safeguards to prevent a data breach,
  3. Inform the Data Protection Board of India and affected persons in the event of a breach, and
  4. Erase personal data as soon as the purpose has been met and retention is not necessary for legal purposes (storage limitation).  In case of government entities, storage limitation and the right of the data principal to erasure will not apply.

Significant data fiduciaries: Certain data fiduciaries may be designated as significant data fiduciaries.  Certain factors must be taken into regard such as:

  1. Volume and sensitivity of personal data processed,
  2. Risks to the rights of data principals,
  3. Security of the state, and
  4. Public order.

These entities will have certain additional obligations including: (i) appointing a data protection officer, and (ii) undertaking impact assessment and compliance audit.

Exemptions:  Rights of the data principal and obligations of data fiduciaries (except data security) will not apply in specified cases.  These include:

  1. Prevention and investigation of offences, and
  2. Enforcement of legal rights or claims.

The central government may, by notification, exempt certain activities from the application of the Bill.  These include:

  1. Processing by government entities in the interest of the security of the state and public order, and
  2. Research, archiving, or statistical purposes.

Processing of personal data of children:  The Data bill defines children as those below 18 years which is above global threshold. While processing the personal data of a child, the data fiduciary must not undertake:

  1. Processing that is likely to cause any detrimental effect on the well-being of the child, and
  2. Tracking, behavioral monitoring, or targeted advertising.

Cross-border transfer:  The Bill allows the transfer of personal data outside India, except to countries restricted by the government through notification.

Data Protection Board of India: The central government will establish the Data Protection Board of India.  Key functions of the Board include:

  1. Monitoring compliance and imposing penalties,
  2. Directing data fiduciaries to take necessary measures in the event of a data breach, and
  3. Hearing grievances made by affected persons.

Board members will be appointed for two years and will be eligible for re-appointment.

Penalties: The schedule to the Bill specifies penalties for various offences such as up to:

  1. Rs 200 crore for non-fulfilment of obligations for children, and
  2. Rs 250 crore for failure to take security measures to prevent data breaches.

Conclusion:

Digital Personal Data Protection Bill 2023 will make Social Media more accountable, boost business of the IT Industry and change the way organizations process data of Indians.  The exemptions that are given to Government under the proposed law are far fewer than what the European privacy law provides.  There are many instances where the global customers of the IT Industry were earlier questioning if India has a proper data protection regime.

This will also make Social Media platform accountable.  They will be bound by the same rules that Indian companies will be bound by.  They will also have to implement measures for protection of personal data of Indians.  Overall, there will be significant behavioral change in the organizations that collect and process data.  Sharing of data, when happens between organizations, will certainly change.

The law is very simple and drafted very neatly.  So, the regulations and rules will be exactly the same way.  There won’t be a multitude of layers of regulations. The implementation structure will be entirely digital and work on the rules and regulation framework has already started.  The rules will also be simple, very straightforward and easy to implement.

References: –

  1. Economic Times dated 10th August and 11th August 2023
  2. Times of India dated 10th August 2023
  3. The Hindus dated 10th August 2023
  4. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1947264
  5. https://prsindia.org/billtrack/digital-personal-data-protection-bill-2023
  6. Statement by Mr Ashwini Vaishnaw, Minister for Electronics and IT at Rajya Sabha on 9th August 2023
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Mir Payment System https://www.sifl-training.com/2021/10/12/mir-payment-system/ https://www.sifl-training.com/2021/10/12/mir-payment-system/#respond Tue, 12 Oct 2021 14:35:08 +0000 https://www.sifl-training.com/?p=912 Mir is a Russian payment system. It facilitates electronic funds transfers based on the national payment system established by the Central Bank of Russia by the law adopted on May 1, 2017 The system is operated by the Russian National Card Payment System a wholly owned subsidiary of the Central Bank of Russia.

Mir does not issue cards, extend credit or set rates and fees for consumers; rather, Mir provides financial institutions with Mir-branded payment products that they then use to offer credit, debit, or other programs to their customers. Mir cards are accepted mostly by Russia-based companies, such as Aeroflot or Russian Railways, although it is gradually becoming popular among foreign companies with Russian operations.

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QR Code or SMS string-based E Voucher – E Rupi https://www.sifl-training.com/2021/10/12/qr-code-or-sms-string-based-e-voucher-e-rupi/ https://www.sifl-training.com/2021/10/12/qr-code-or-sms-string-based-e-voucher-e-rupi/#comments Tue, 12 Oct 2021 14:33:18 +0000 https://www.sifl-training.com/?p=907 E-Rupi developed by National Payments Corporation of India & the Ministry of Health & the Family Welfare launched by Prime Minister of India on 2nd August 2021 is currently aiming , for leak proof delivery welfare services like medicines, nutritional support, Mother & Child Welfare, TB eradication, Drugs & Diagnostics programmes. In future the E-Rupi can be used for Employee welfare and Corporate Social Responsibility programmes

E-Rupi by Government of India and Digital Currency by RBI-CBDC (Central Bank Digital Currency) are expected to bring revolution in financial payments landscape in India.

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BOE Monetary Policy Committee announcement https://www.sifl-training.com/2021/10/12/boe-monetary-policy-committee-announcement/ https://www.sifl-training.com/2021/10/12/boe-monetary-policy-committee-announcement/#respond Tue, 12 Oct 2021 14:32:21 +0000 https://www.sifl-training.com/?p=904 Bank Rate maintained at 0.1%

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 4 August 2021, the Committee judged that the existing stance of monetary policy remained appropriate. The MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves at £20 Billion.   

The Committee voted by a majority of 7-1 for the Bank of England to continue with its existing program of UK government bond purchases, financed by the issuance of central bank reserves, maintaining the target for the stock of these government bond purchases at £875 billion and so the total target stock of asset purchases at £895 billion. 

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Deposit Insurance https://www.sifl-training.com/2021/10/12/deposit-insurance/ https://www.sifl-training.com/2021/10/12/deposit-insurance/#respond Tue, 12 Oct 2021 14:31:12 +0000 https://www.sifl-training.com/?p=901 India Cabinet approved insurance to bank deposits up to Rs 5 lakhs. Bank Deposits are insured by Deposit Insurance & Credit Guarantee Corporation, a Reserve Bank of India subsidiary. DICGC Act ensures payment of deposits up to Rs 5 Lakhs if any Bank in India is placed under moratorium.

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E Mail frauds https://www.sifl-training.com/2021/10/12/e-mail-frauds/ https://www.sifl-training.com/2021/10/12/e-mail-frauds/#respond Tue, 12 Oct 2021 14:30:17 +0000 https://www.sifl-training.com/?p=897 Modus Opearndi
  • The email account hacked using tools to capture the password of the account:
  • By Sending Phishing Mails
  • By Sending unsolicited/spam mails containing attachments with embedded malwares
  • Suspicious emails and notifications
    • Phishing and “Please send money” scams
    • Appear to be from a site administrator
      • Asking for your password
      • Threatening to suspend your account
  • Preventive Measures
    • Use 2 Factor Authentication
    • Do not open SPAM mails or from Unknown sender
    • Do not click on attractive and tempting links
    • Keep your e-mail password long and difficult
    • Don’t store your passwords in your device

Always have a lock screen on your Devices

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