The Indian government is setting out a legal framework that defines the standards and liabilities of payment companies to protect customer data, Mint reported Dec. 22, citing Aruna Sundararajan, a secretary in the country's electronics and information technology ministry.
The proposed framework will define graded levels of security for companies, depending on the number of customers.
The move comes after the demonetization of old high-value banknotes in November, which led to a surge in the number of people signing up for digital payments services, as well as a recent security breach affecting 3.2 million debit cards.
The legal framework will cover e-wallets, prepaid cards, payment gateways, bank services and the use of credit cards in online transactions.
The Indian government will be looking at the country's Information Technology Act to assess if there is a need for amendments to address issues regarding security.