MobiKwik welcomes govt's draft regulations on digital wallets

Mobile wallet company MobiKwik welcome the government's draft guidelines for digital wallet companies in the country. It said that the government's new digital payments recommendations will be a strong foundation that addresses the three important points, ie strong information security, quick fraud detection and fast grievance redressal.

Bipin Preet Singh, Founder and CEO, MobiKwik said, “We welcome Ministry of Electronics and Information Technology (MeitY), Government of India’s new digital payments recommendations and feel that this will be a strong foundation that addresses the three important pillars of success in this Industry, namely; strong information security, quick fraud detection and fast grievance redressals.”

He further added, “At Mobikwik, we are already implementing many of these suggestions and our over 55 Million users and 1.5 Million plus merchants are already benefitting from our robust security systems which are PCI-DSS and ISO27001 certified. Our fraud detection team are razor-sharp and invariably put in 17 hours on an average and carry out risk assessment on a regular basis which ensures that our grievance redressal tickets are closed within 30 minutes of raising.”

The Ministry of Electronics and Information Technology has released a set of draft guidelines for digital wallet companies on Wednesday as part of its efforts to promote electronic payments and at the same time ensuring security of transactions. The draft Information Technology (Security of Prepaid Payment Instruments) Rules 2017 was issued by the ministry and is open to suggestions until March 20.

Under the rules every digital wallet has to develop a security policy based on the rules and standards set by the government. It further said that these companies will have to review their security measures at least once a year and even after any major security incident or breach or before a major change in its infrastructure or procedures.

It says that digital wallets will have to identify and authenticate every customer at the time of issuance and adopt two-factor authentication for transactions.

They will also have to disclose the type of information they are collecting from customers and with whom they are sharing such information. It will be allowed to store it only for a period specified by the government. The customer data will also have to be end-to-end encrypted so as to safeguard their data, especially financial data such as bank balances.