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ONLINE PAYMENT AND DATA PROTECTION

Author: Meenu Priya K G, B.com.,LL.B(Hons.) from Govt. Law College, Ernakulam, Kerala


The whole world is moving ahead towards a cashless, wallet-free era. Even though online payment solutions were widely used before the panic-stricken period of Corona from 2020, we can see a colossal increase as per the present report. Without debit, or credit bank cards, instead of going to ATMs, money can be simply received and paid throughgadget-based money payment apps. We may be protected from fraud or unauthorized transactions by UPI protection but what the companies actually do with our personal data is a riddle. It’s major benefits are;Reduces costs, improves cash flow, allows for automated recurring payments, attracts more clients, simplifies reporting and reconciliation, Offers secure payments etc. Albeit such payments provide secure transactions, to what extent is a suspicious fact. Here comes significance of data protection and privacy.


Privacy and constitutional Rights

The right to privacy is an aspect of legal tradition that intends to restrain governmental and non-public moves that threaten the privacy of individuals. Over one hundred and fifty countrywide constitutions point out the proper to privacy. Right to privacy is not a written words in Universal Declaration Of Human Rights (UDHR) 1948, still privacy is recognised as a basic right.The General Data Protection Regulation (GDPR) is a regulation under laws of European Union(EU) and the Economic Area(EEA) on data protection. The GDPR is an important element ofmortal rights law, embedded under article 8 (1), Charter of Fundamental Rights of the of EU law. It also addresses the transfer of private data outside the EU and EEA areas. The GDPR's primary vision to enhance individualities control and rights over their precious data and to simplify barriers over international business.


Relieving the Data Protection Directive 95/ 46/ EC, the regulation contains provisions related to the processing of private data of individuals, who are located in the EEA, and applies to any enterprise. Anyhow, its position and the data subject’s citizenship or inhabitation — that is refining the private information of people inside the EEA. There is no single main safety regulation in the United States (U.S.). Rather, a lots of legal guidelines enacted on each the federal and state level to serve the people of U.S. At the federal level, the Federal Trade Commission Act (15 U.S. Code § forty one et seq.) is enabled in Indian law, right to privacy is included as an innate entitlement to life and personal liberty under Article 21 and as a phase of the freedoms assured with the aid of Part III of the Constitution. Besides, Information Technology Act (ITA, 2000) is the primary law in India dealing with cybercrime and electronic commerce.


Problems In Online Payment and Security Of Data

Strong network connection is required. Unless, the transaction will be incomplete and have to start from the beginning. Bank server issues may cause failure in e-payment also wrong account balance statements. Sometimes the amount will be debited from the account but may have to make the payment twice if it is not reflected in the site or page where payment process is carried. Not only payment apps but other apps may also seeks permission to access our storage, location, camera etc. for various purpose. If permission is denied their services were also, if granted chances of misuse cannot be ignored. Cyber laws are not a final solution there. In the Sprinkler Case[1] and in Cambridge Analytica scandal case[2]violation to data privacy clearly evident are very much relevant here and reminds more advanced and compatible data protection laws. InPuttaswami’s case[3],the right was not absolute but allowed for restriction where it was provided by law.


The Personal Data Protection (PDP) Bill 2019; withdrawal before implementation

The (PDP) Bill 2019 was tabled in the Indian Parliament by the Ministry of Electronics and Information Technology on 11 December 2019[1]. The Bill covers mechanisms for privacy of data and proposes the placing up of a Data Protection Authority of India. Major provisions under the 2019 Bill offers for which the 2018 draft Bill did not, such as that the central authorities can exempt any authorities or company from the Bill and the Right to Be Forgotten, have been included.However, considering the drawbacks of the billit was decided by the Ministry of Information technology(I.T) recently to withdraw the bill[2].We’ll wait and see when and how the government of India willbring a well defined and effective privacy protection policy includingpresent technical aspects withmeeting or not the International standards. Also,impact of the samein protecting our right to privacy!

[1] "The Personal Data Protection Bill, 2019". PRS India. 11 December 2019. Retrieved 21 December 2019 [2]https://m.economictimes.com/tech/technology/government-to-withdraw-data-protection-bill-2021/articleshow/93326169.cms

[1]BaluGopalakrishnan v. State Of Kerala(Kerala High Court Dec 1, 2020) [2]The Cambridge Analytica–Facebook scandal [3]Justice K.S. Puttaswamy and Anr. vs. Union of India (UOI) and Ors.(2019) 1 SCC 1