December 2021
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RBI Notifications

What is Tokenization of Debit and Credit Cards?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Tokenization

Mains level: Read the attached story

The Reserve Bank of India (RBI) has decided to defer the implementation of tokenization of debit and credit cards for online transactions by a further six months following representations from stakeholders.

RBI decision

  • RBI has also extended tokenization of Card-on-File (CoF) transactions where card details are saved by merchants — and directed the merchants not to store card details in their systems from January 1, 2022.
  • A CoF transaction is one in which a cardholder has authorized a merchant to store his or her Mastercard or Visa payment details, and to bill the stored account.
  • E-commerce companies and airlines and supermarket chains often store card details.

What is Tokenisation?

  • Tokenisation refers to the replacement of credit and debit card details with an alternative code called a ‘token’.
  • This token is unique for a combination of card, token requestor (the entity that accepts a request from the customer for tokenisation of a card and passes it on to the card network to issue a token) and the device.

Benefits of Tokenization

  • Transaction safety: Tokenization reduces the chances of fraud arising from sharing card details.
  • Easy payments: The token is used to perform contactless card transactions at point-of-sale (PoS) terminals and QR code payments.
  • Data storage: Only card networks and card-issuing banks will have access to and can store any card data.

How are the transactions currently processed?

  • There are many players involved in processing one card transaction today:
  1. Merchant
  2. Payment aggregator
  3. Issuing bank
  4. Card network
  • When a transaction happens on a merchant platform, the data is sent to the payment aggregator (PA).
  • The PA next sends the details to either the issuing bank or the card network.
  • Then issuing bank sends an OTP and the transaction flows back.

Which companies dominate card transactions in India?

Is the industry ready to implement this?

  • Not fully, that is why the RBI had to extend the deadline.
  • The industry currently can convert CoF into a tokenized number. However, the readiness to process the token is negligible.
  • About 90% of banks are ready with provisioning of token on Visa. Only 25-30% banks are ready on Mastercard.

Impact on businesses

If the industry isn’t ready, several business models would be impacted.

  • E-mandates (recurring payments) will stand ineffective from 1 July.
  • Card EMIs account for 25% of online e-commerce sales. That option will no longer be available.
  • Cashbacks/discount offers by banks will be impacted, too.
  • A user may not be able to use Mastercard saved cards on a merchant platform to make a transaction and will have to enter the card details every time a transaction is made.
  • This could be the same for some Visa cards.

Way forward

  • The new system is a much bigger disruption to the way digital payments will henceforth be processed.
  • Integration of systems and the ability to process is one part.
  • The industry also needs to test the performance and success rate of the tokenization solution.

 

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Women Safety Issues – Marital Rape, Domestic Violence, Swadhar, Nirbhaya Fund, etc.

Maharashtra govt.’s Shakti Bill

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Need of stringent laws for women safety

The Maharashtra government’s Shakti Criminal Laws (Maharashtra Amendment) Bill, 2020, on crimes against women and children has recommended capital punishment in rape cases.

Why have stringent laws have consistently failed to instill any fear in rapists? Discuss.

Shakti Act: Key Provisions

  • Capital punishment: It proposes stringent punishment including the death penalty and heavy fines for the culprits.
  • Fast-track trial: Special police teams and separate courts will be set up for investigation and trial of cases against women and children.
  • Jail term: The perpetrators if found guilty will be punished with imprisonment for life for not less than ten years but may extend to the remainder of natural life or with death in cases which have characteristics of being heinous in nature.
  • Compensation: A sum of Rs 10 lakh will be given to an acid attack victim for plastic surgery and facial reconstruction and the amount will be collected as fine from the convict.
  • Rapid investigation: The investigation shall be completed within a period of 15 working days from the date of registration of an offence. This can be extended by 7 days.
  • In-camera investigation: Some cases will be tried in-camera for the recording of evidence of victims and witnesses who are vulnerable.

Why in news?

(1) Covering acid-attacks

  • Politicians in Maharashtra have recommended increasing the quantum of punishment for acid attack cases under section 326A of IPC to at least 15 years that may extend to the remainder of a convict’s natural life.
  • The expenditure of plastic surgery and face reconstruction operations for the victim will be taken care of from the monetary fine to be charged on the accused.

(2) Social media accountability

  • The panel has also increased the punishment under the IPC section 175A for failure to share data for probe by social media platforms, internet providers.
  • Also, under Pocso Act, the data must be within three days at the pain of penalty.

(3) Curb on false complaints

  • Punishment will be increased for false complaints and for giving wrong information to a public servant.
  • The provisions under the bill are being made more stringent to punish the culprits and set deterrence.
  • However, it is also necessary that the innocent are saved and so severe punishment is required against people filing false or wrongful complaints.
  • The committee has also scrapped the provision of not giving anticipatory bail to people making wrongful or false complaints.

(4) Covering trans-persons

  • Under section 354E, which provides for punishment for any act of intimidating woman and insulting her modesty, the category of offenders has been increased to cover men, women and even transgender persons.

Limitations of stringent laws

  • Despite several laws, incidences of rapes continue unabated.
  • In fact, now we hear cases of extreme brutality.
  • The general perception is that since the laws have been made more stringent, so the rapists resort to extreme measures in a bid to destroy the evidence.

Way forward

  • What we need is better policing, making public spaces safer for women, ensuring round-the-clock surveillance of isolated areas, and deployment of police at all strategic points.
  • Prevention and not punishment is the solution and that requires concerted efforts on part of all the stakeholders.
  • It is not harsher punishments that will deter. It is the fear of being caught and not being spared.

 

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Modern Indian History-Events and Personalities

Who was P.N. Panicker?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: P.N. Panicker and his contribution

Mains level: Not Much

The President of India has recently unveiled the statue of Shri P.N. Panicker at Poojappura, Thiruvananthapuram.

P.N. Panicker (1909-1995)

  • Puthuvayil Narayana Panicker is known as the Father of the Library Movement of Kerala.
  • June 19, his death anniversary, has been observed in Kerala as Vayanadinam (Reading Day) since 1996.
  • In 2017, PM has declared June 19, Kerala’s Reading Day, as National Reading Day in India.
  • The following month is also observed as National Reading Month in India

Contributions

  • Panicker led the formation of Thiruvithaamkoor Granthasala Sangham (Travancore Library Association) in 1945 with 47 rural libraries.
  • The slogan of the organization was ‘Read and Grow’.
  • Later on, with the formation of Kerala State in 1956, it became Kerala Granthasala Sangham (KGS).
  • He traveled to the villages of Kerala proclaiming the value of reading.
  • Grandhasala Sangham won the ‘Krupsakaya Award’ from UNESCO in 1975.
  • It became the Kerala State Library Council, with an in-built democratic structure and funding.

 

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