wordpress blog stats
Connect with us

Hi, what are you looking for?

IT Rules 2021: What Do They Mean For Payment Companies?

Payment companies will need to comply with the government's new Information Technology Rules 2021, as they fit the definition of an internet intermediary, legal experts told MediaNama. However, compared to social media entities, streaming platforms and digital media entities, the burden of compliance is far lower since payment players are already regulated entities under the Reserve Bank of India. A bit of context: According to the IT Act, 2000 an intermediary is "any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record." It includes internet service providers, search engines, online payment sites and auction sites among others. Therefore, payment companies like Google Pay, Paytm, PhonePe and other pre-paid instrument or e-wallet players on the Unified Payments Interface, or Razorpay, PayU and CCAvenue, who provide payment gateway and aggregator services, qualify as internet intermediaries. Why it matters: Since payment companies fit the definition of an internet intermediary, they will need to comply with the IT Rules 2021. This includes: appointing a grievance officer and a compliance officer who respond to queries sent by the government and regulators, they need to conduct due-dilligence, proactively identify and take down content using automated tools, comply with government takedown orders and create a grievance redressal mechanism. Need to test scope of law According to a senior lawyer, since payment companies connect users and transmit data they fit the the definition of intermediary under the IT rules. "But these were created without a…

Please subscribe/login to read the full story.
Written By

Reports on banking, payments, fintech and crypto-curencies. Additional reporting on media regulations, data protection and other areas.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

News

RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

News

Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...

News

The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ