look news india
Mumbai: The Reserve Bank of India (RBI) has directed all non-bank payment system operators (PSOs) to provide information about high value or suspicious transactions during the Lok Sabha elections that began in the country from April 19.
A letter sent by the Reserve Bank to non-bank PSOs said that there is a possibility of various electronic means of payment being used to influence voters or provide funds to candidates contesting elections.
Reserve Bank sources said that the Election Commission has expressed concern to the Reserve Bank in this regard, in which it has suggested the Reserve Bank to take appropriate action.
The Reserve Bank has directed fintech companies to report any such financial transactions to the appropriate agency or authority.
PSOs are intermediaries including payment gateways, card networks, payment apps that provide payment settlement arrangements to acceptors and payers in online transactions.
Sources further said that the Election Commission has also directed banks to report any suspicious financial transactions during the election period. Banks will have to provide information to the Election Commission daily.
It has also been directed to monitor whether the demand for payment in wallet transactions is increasing or not.
The Lok Sabha elections, which began on April 19, are ending on June 1. There is a huge increase in black money transactions in the country during Lok Sabha and Assembly elections.
With the increase in the use of technology, more and more transactions are done online instead of handling cash. There are risks involved in handling cash.