Demonetisation effect: PM Modi govt plans on Mobile Wallet money insurance, to boost cashless economy


Following the much talked about ‘demonetisation’ move by PM Narendra Modi-led government, the narrative of a cashless economy and digital transactions were pushed hard. Now, according to reports, the central government is mulling over bringing insurance to mobile wallet and electronic transactions. According to PTI, the Government has started talks with mobile wallet players as well as insurance companies to figure out a way to enable an insurance framework for digital wallet transactions. The talks also include the notification of forensic labs who are the registered ‘examiners’ for the digital evidence. Currently, the IT ministry is the only registered cyber crime-related evidence examiner.

PTI quoted an official source as saying, “The IT Ministry has coordinated 2-3 meetings with insurance firms and mobile wallet players. The core idea is that money in electronic wallet needs to be insured.” The source also added that the talks have reached a breakthrough point, and once it reaches a final stage, the rules will be laid out to enable an insurance framework for electronic wallet transactions. Talking about the notification of forensic labs as ‘examiners’ of evidence regarding cyber crime the source was reported as saying that the IT ministry is the lone registered examiner for it. The government, however, will initially notify two or three more forensic labs as examiners of electronic evidence. In future, every district will have a notified examiner, according to the government’s plans.

After the demonetisation move, PM Modi in his first ‘Mann Ki Baat’ address urged everyone – common man, youth, farmers, workers, small businessmen – to make India a cashless economy and move towards adopting the various systems that aid digital transactions. Additionally, he had tweeted, “Time has come for everyone, particularly my young friends, to embrace e-banking, mobile banking & more such technology.”

After announcing that old Rs 500 and Rs 1000 would cease to be legal tender money, Modi government has been encouraging people to embrace mobile banking and various other transaction platforms such as debit and credit cards.

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