RBI asks payment firms like Paytm, Phonpe to report suspicious fund transfers during LS polls

Srinagar, April 22: RBI asks payment firms like Paytm, Phonpe to report suspicious fund transfers during LS pollsthe development also comes in the backdrop of the Election Commission of India raising concerns in this regard and recommending appropriate action when necessary. Image: Reuters

The Reserve Bank of India ( RBI) has asked non- bank payment system operators ( PSOS), to track high- value or suspicious transactions through electronic modes of payment during the ongoing Lok Sabha elections to prevent any misuse of funds to influence voters.

The RBI'S letter, dated April 15, states that the “various electronic modes of payment have the potential to be used for the transfer of money to influence voters or to fund the candidates participating in the elections.”

"You are accordingly advised to do the needful and report high- value/ suspicious transactions to the appropriate authorities or agencies as per the guidelines issued by the ECI from time to time," RBI said in the letter.

The development also comes in the backdrop of the Election Commission of India raising concerns in this regard and recommending appropriate action when necessary.

The Lok Sabha poll process kicked off on April 19 and the counting of votes for the 7- phase polling is scheduled for June 4. PSOS include card networks such as Visa, Mastercard, and Rupay as well as payment gateways such as Razorpay and payment apps like Paytm, Bharatpe and Phonepe.