India's Legal Response to the Digital Payments Revolution: Adapting to a Cashless Economy
- YourLawArticle
- Apr 16
- 1 min read
Authored by : Helik Soni, B.B.A.LL.B, United World School of Law, Karnavati University
&
Dr.Mayura Sabne, Assistant Professor of Law, United World School of Law, Karnavati University
Abstract
India has witnessed a digital revolution in recent years, marked by the exponential growth of electronic payment methods and a governmental push toward a cashless economy. This transformation has not only modernized the financial landscape but also posed complex legal and regulatory challenges. This research paper examines India’s legal response to the digital payments revolution by analyzing the existing legal framework, judicial pronouncements, regulatory bodies, and government initiatives. The role of the Reserve Bank of India (RBI), the of Information Technology Act, 2000, and the Payment and Settlement Systems Act, 2007 are examined in depth. Further, issues related to data privacy, cyber fraud, financial inclusion, and fintech regulation are discussed, along with policy recommendations to strengthen the digital payment ecosystem. Through this legal and regulatory analysis, the paper seeks to assess the adequacy of India's current legal infrastructure in addressing the challenges and opportunities posed by digital payments.
Key words: Digital Payments, Data Localization, Tokenization, Digital Economy, Reserve Bank of India
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