With eye on Lok Sabha elections 2024, RBI orders payment companies to report suspicious transactions - Hindustan Times
close_game
close_game

With eye on Lok Sabha elections 2024, RBI orders payment companies to report suspicious transactions

Apr 22, 2024 12:58 PM IST

Lok Sabha elections 2024: RBI has told payment firms to ensure they keep an eye on high-value transactions in order to ensure a free and fair elections process.

The Lok Sabha elections 2024 are in full swing with electioneering adding much colour to the entire process. However, to ensure that there is no wrongdoing, the Reserve Bank of India (RBI) has sent a missive to Payment System Operators (PSOs) asking them to keep a watch on all suspicious high-value transactions that they may come across in their systems. The general purpose of the letter is to deny the use of electronic fund transfer mechanism to anyone who is intending to influence the election in any way. Notably, such transactions may be misused to either provide funds to candidates or otherwise influence the voters in some way or the other. The intention is to ensure the elections, which started on April 19, are carried out in as safe, secure and proper way as possible.

RBI is looking to ensure a free and fair Lok Sabha elections 2024 by targetting any suspicious high-value transaction that may come up in payment companies' books.(Reuters)
RBI is looking to ensure a free and fair Lok Sabha elections 2024 by targetting any suspicious high-value transaction that may come up in payment companies' books.(Reuters)

Read More: Bumper debut! Greenhitech Ventures IPO lists at 90% premium on BSE SME

According to a report in MoneyControl that quotes an April 15 letter sent to non-banking PSOs, the RBI said, “Various electronic modes of payments have the potential to be used for transfer of money to influence the voters or to fund the candidates participating in the elections....”

Unlock exclusive access to the latest news on India's general elections, only on the HT App. Download Now! Download Now!

The letter had also indicated the concern expressed over this issue by the Election Commission of India (ECI), which had suggested suitable action to be taken. Among these are to report any such dodgy transactions to the authorities as indicated by the ECI regulations and it applies for the duration of the polling process in the country.

Read More: IREDA shares surge over 11% today. What's happening? Should you buy?

PSOs are intermediaries that enable online transactions, including apps and cards, and include Visa, Rupay, PayU, Paytm, Google Pay and even spans companies that enable foreign money transfers.

Read More: Zomato hikes platform fee for customers by 25%: How costly will your orders be?

In fact, the Chief Election Commissioner (CEC) Rajiv Kumar, as far back as March 16 had ordered banks too to share similar transaction details and that too on a daily basis. “This is part of the steps from the poll body to curb the impact of money power and ensure fair elections," Kumar had explained.

Tell us what your First Vote will stand for in a short video & get a chance to be featured on HT’s social media handles. Click here to know more!

Get Current Updates on India News, Elections 2024,, Election 2024 Date along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, May 20, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On