This document discusses legal aspects of e-payments in India. It defines e-payments and outlines key characteristics like security, reliability, and interoperability. The document describes popular e-payment methods like credit/debit cards, e-wallets, net-banking and their advantages. It also discusses the legal framework for banking in India and steps to take if card fraud occurs, such as immediately informing the card issuer, filing an FIR at the local police station and approaching the cyber cell if needed.

1. LEGAL ASPECTS OF E-PAYMENTS
Dr. P. Lakshmi Prasanna
Associate Professor
Presidency University, Bangalore

2. Meaning and Definition of e-payment
• An e-payment system is a way of making transactions or
paying for goods and services through
an electronic medium, without the use of checks or cash.
• An electronic payment (e-payment), in short, can be
simply defined as paying for goods or services on the
internet.
• It includes all financial operations using electronic
devices, such as computers, smartphones or tablets. E-
payments come with various methods, like credit or debit
card payments or bank transfers.

3. e-payment
• The electronic payment system has grown
increasingly over the last decades due to the
growing spread of internet-based banking and
shopping.
• E-payments have revolutionized the business
processing by are paperless monitory
transactions, i.e., reduced the paper work,
transaction cost and labour cost.
• Its user friendly, less time consuming than
manual processing, helps business organizations
to expand its market reach,

4. Advantages of e-payment
• Reduced risk of loss and theft: As these
transactions used to take without any cash,
so there is no risk of theft or loss.
• Time saving: These transactions can be made
from any nook and corner of the world.

5. Characteristics of E-payments
• The basic characteristics of e-payment system are:
• applicability,
• ease of use,
• security,
• reliability, (dependability, consistency)
• trust, (faith, belief)
• scalability, (able to be climbed up or over)
• convertibility,
• interoperability, (the ability of the component parts of a system to operate
successfully together)
• efficiency,
• anonymity, (secrecy)
• traceability, and
• authorization type.

6. Types of e-commerce payment
systems in use today
• Types of e-commerce payment systems in use today are:
• Credit Card. The most popular form of payment for e-commerce transactions is
through credit cards. ...
• Debit Card. Debit cards are the second largest e-commerce payment medium in
India. ... (Debit cards are magnetic strip and chip enabled cards, issued to
customers by their respective banks).
• Smart Card. ... ( smart card contains a special embedded microprocessor, which
is a computer processor or a microchip).
• E-Wallet. ... (E-wallet is a type of electronic card which is used for transactions
made online through a computer or a smartphone. Its utility is same as a credit
or debit card. An E-wallet needs to be linked with the individual's bank account
to make payments. ... An E-wallet is protected with a password).

7. Types of e-commerce payment
systems in use today
• Net-banking. ...
• Mobile money Payment. ...
• Amazon Pay
• Google pay
• Paytm
• Pay mini etc.

8. Legal aspects of Net-banking in India
• Indian banking system can go cashless with
the aid of Internet banking.
• Internet banking is also known as e-banking
or online banking or virtual banking.
• It is an electronic payment system that
enables customers of a bank or other
financial institutions to conduct a range of
financial transactions through the financial
institutions websites.

9. Legal aspects of Net-banking in India
• There are different types of online
financial transactions famously called as core banking
such as:
• Nation Electronic Fund Transfer (NEFT),
• Real time gross settlement (RTGS),
• Electronic clearing system (ECS),
• Immediate Payment Service (IMPS),
• Automated teller machine,
• Smart cards,
• Tele banking etc.

10. Legal aspects of Net-banking in India
• Through Internet banking we can check our
transactions at any time of the day and as
many times as want to.

11. Advantages of Internet Banking
• Convenience
• Better rates
• Services
• Mobility
• Environment friendly

12. Disadvantages of Internet Banking
• Relationships
• Complex transactions
• Security
• The trust factor
• Customer awareness

13. The legal framework for Banking in India is
provided by a set of enactments
• The Banking Regulation Act 1949,
• The Reserve Bank of India Act 1934
• The Foreign Exchange Management Act 1999
• The Information Technology Act 2002
• The Negotiable Instruments Act,1881
• The Consumer Protection Act 1986
• The Indian Contract Act, 1872

14. HOW TO TAKE LEGAL ACTION IN CASE OF
SMART/DEBIT/CREDIT CARD FRAUD?
• The moment a person come to know that a
suspicious transaction has been done on his or her
credit/debit card, has to inform the card issuer
immediately.
• One should lodge a formal complaint with the
bank and ideally call up the customer care number
to block the card or the account immediately.

15. HOW TO TAKE LEGAL ACTION IN CASE OF
SMART/DEBIT/CREDIT CARD FRAUD?
• How to file a complaint?
If the fraud is related to net banking, ATM
transactions, or any other online transaction
happens, the person have to raise a complaint.
But, before filing a written complaint with the
bank or the card issuer, the person has to make
sure that he or she has at least these following
documents :

16. Documents required for written
complaint ----
• Bank statement of the last six months of the
concerned bank
• A copy of SMSs received related to the alleged
transactions
• A copy of your ID proof and address proof as
shown in the bank records
• A complaint lodged in the nearest Cyber Police
station explaining the complete incidence along
with the above said documents

17. Fraud through fake apps
• There are several fake apps being floating
around in the cyber world. In case of any
financial fraud committed through an app, (Any
desk app) in addition to the above mentioned
documents, also have to furnish the screenshot
of the malicious app and the location from
where it was downloaded.

18. Where to file the complaint?
• Once the card issuer or the bank has been
informed about the fraudulent transaction, one
should file a written compliant with the nearest
police station. "An FIR has to be filed in the local
police station only”.
• In case police refuses to file an FIR, the court can
be approached under section 156(3) of the CrPC.
(Criminal Procedure Code)

19. Where to file the complaint?
• But, what if the police asks to go to the Cyber
Cell to file the complaint? The concerned
person need to approach the cyber cell.
• The contact details of such district cyber cell
specific to the person’s place of residence can
be found on the Internet.