ICICI’s pocket application/service is an
application that allows sending or receiving of money using a
Facebook account. Money can be transferred to friends using the
application and a redeemable coupon is issued in favour of the
transferee friend.
However, doubts have been raised about the legality
of such a service and its use in India especially keeping in mind the
recent developments in the banking field. Techno legal experts have
opined that ICICI’s
Facebook application Pockets may be violating Indian cyber and
banking laws.
According to Praveen Dalal, managing partner of New
Delhi based ICT law firm Perry4Law
and leading techno legal expert of Asia, the Reserve Bank of India
(RBI) has recently declared that Risk
Management for Card Present Transactions would become
operational from 1st October 2013.
Banks that are Negligent in implementing the
provisions of the same and other related Notifications by the RBI
would be punishable under the provisions of Payment and Settlement
Systems Act, 2007 and would also be liable to bear the losses arising
out of any Fraud or Illegal Monetary Transactions, informs Dalal.
Presently credit card frauds, ATM frauds and online
banking frauds are on rise in India. However, banks are shifting
their liability for these frauds and crimes to the victims of these
frauds and crimes. Most of the victims are not aware that it is the
primary liability of the banks to compensate the victims of such
frauds as they have failed to adopt proper cyber security practices.
Before using applications/services like pockets,
online users must ascertain the legality and security of the same. No
matter howsoever fancy or attractive a service may appear, its
consequences must be analysed in advance.
