Regulating E-transactions: Role of RBI and legal issue
Author :- Ayushi Ranjan
Introduction
“One of the internet’s strengths is its ability to help consumers find the right needle in a digital haystack of data”.
-Jared Sandberg
Today every one of us are involved in financial transactions of be it the depositing of money in bank, withdrawal, any investment related transactions or if we buy or sell any shares, bonds or if any transactions related to post office, and property related transactions. Some of these transactions are reported on the basis of pan card to the income tax department, all these transactions related provisions come from Income Tax Act 1961, [1]section-285bA lays down the provisions to report such transactions under rule 114E and the form to submit while involving in transactions with these companies is Form 61A and the last date of submitting the form in any financial year is 31may.
Regulation of E-transaction is ensured by the mechanism known as specified financial transactions aimed at keeping an eye on the high value transactions done by the tax payers, for this purpose income tax act as mentioned above has framed an effective concept to furnish the statements of specified financial transactions.
Talking about those specific transactions includes [2]14 SFTs, in a financial year if purchase of bank drafts or pay orders that is amount aggregating to ten lakh rupees or more in a particular financial year. Same as a purchase of pre-paid instruments in each to amount increasing to ten lakh rupees or more in a financial year. Talking about the 3rd category which consists of two sub categories: one with the cash deposit in current account which will be up to fifty lakh rupees or more in any financial year and the second category which is withdrawals in current account that will be fifty lakh rupees or more than that of any financial year. If we talk about more transactions, in any financial year if cash deposit in account other than the current account increases to ten lakh rupees or more. Then the fifth type of STF stated under the act, states that if time deposit exceeds to ten lakh.
Sixth type of [3]STF under the provisions lays the payment for credit card which is divided into two, first is the payment of one lakh rupees or more in cash and the second will be ten lakh rupees or more by any other modes. Further emphasizing on the purchase of debentures exceeding to ten lakh rupees or more in any financial year. Eighth category attracts the purchase of any shares of amount exceeding to ten lakh rupees or more in the financial year. The next transaction will be applied when buy back of shares amount or value exceeding to ten lakh rupees or more in a financial year.
Some of the transactions which also includes transactions like purchasing of any mutual funds units of amount exceeding to ten lakh rupees or more in a financial year. Or transactions including purchasing of any foreign currency of amount exceeding to ten lakh rupees or more during the financial year. And any purchase or sale of immovable property of an amount thirty lakh rupees or more valued by the stamp valuation authority. Along with the two very important transactions which includes any cash payments for goods and services with receipt of cash payment exceeding two lakh rupees for sale and the those cash deposits during the specified period and that would be from 9th November, 2016 to 30th December, 2016 exceeding to: 1- twelve lakh fifty thousand rupees or more, in one more current account.
ROLE OF RBI
Going forward with a [4]visionary attitude of 2021 that lays down some of its objectives and realizes a highly digital and a cash less arena for the society through achieving the competition to cost to convenience along with the confidence. Therefore if we talk about empowering each national with associate in nursing access to a bouquet of e-payment choices.
The Reserve bank’s effort are to develop economical and secure payment and settlement systems with a emphasis or let say give a spotlight on their larger penetration through access of easy Platforms and that too on a reasonable value. The banking concern has been empowering the innovation in payment system and at the same time that masters in the security and security of every individual transactions.
Also the banking concerns can integrate and consolidate the upgraded enterprise and its layout. The Enterprise Platform as a technique results in consolidation and integration of multiple applications within the IT landscape of the banking concern. this can cause economical use of IT infrastructure guaranteeing improvement of operations, and a more in-depth alignment between [5]ICT deliverables and business needs. The banking concern can endeavour for IT security supported adopting a zero-trust framework.
Conclusion
Today we all know that how much technology is into our veins just like nay other thing which is essential for the civilization, well this isn’t about the civilization but can be related with the society where we have seen so many developments, and the specified financial transactions are one development which was needed by our society, there have always been the loopholes that existed with the framework, i cannot talk about philosophy related to the tax payment system but definitely after we saw the demonetization and GST got into the system made everything very creative in terms of achieving the welfare goals.
Today in terms of welfare concepts i see this innovation and mechanisms as an essential and necessary steps taken towards the new arena where transparency will be appreciated, i mean there can still be the methods of making corruption stay, in terms of black money or tax evasion but there is no denying to this fact that online transactions will ensure our just and reasonable goals of a better society. What is [6]challenge is the better implementation and that sense of responsibility or be it duty to under that everything is interlinked in terms of our whole machinery to make this happen and track down the money which will ensure the proper payment system as well as the tax system which has a soul of welfare and just concept to give it to all, who are not in a state to stand can get support if we all as one realize this that what we give is for the needy and what we show or what be the transparent is just.
