Centre for Internet and Society

Studying Internet in India (2016): Selected Abstracts

sumandro — 2016-07-06T06:24:42Z

We received some great submissions and decided to select twelve abstracts, and not only ten as we planned earlier. Here are the abstracts.

Abhimanyu Roy

The Curious Incidents on Matrimonial Websites in India

What is love? Philosophers have argued over it, biologists have researched it and in the age of the internet, innovators have disrupted it. In the west, dating websites such as OKCupid and eHarmony use all manner of algorithms to find its users their optimal match. In India’s conservative society though, dating is fast-tracked or skipped altogether in favor of marriage. This gives rise to a plethora of matrimonial sites such as Jeevansathi.com and Shaadi.com. This is where things get tricky.

Matrimonial websites are different from other internet-enabled services. The gravity of the decision and the major impact that it has on the lives of users brings in pressure and a range of emotions that are not there on casual transactions such as an Uber ride or a foodpanda order. From outright fraud to online harassment newspaper back pages are filled with nightmare stories that begin on a matrimonial website. So much so, that in November of last year, the Indian government decided to set up a panel to regulate matrimonial sites in order to curb abuse. The essay will analyze India’s social stand on marriage, the role of matrimonial websites in modern day India, the problems this awkward amalgamation of the internet and love gives rise to and the steps authorities and matrimonial companies are taking to prevent these issues from occurring.

Anita Gurumurthy, Nandini Chami, and Deepti Bharthur

Internet as Sutradhar: The Aesthetics and Politics of Digital Age Counter-power

The open Internet is now a feeble, wannabe, digital age meme. The despots have grabbed it and capitalism has colonised it. But the network that engulfs its users is also a multi-headed organism; the predictables have to make peace with the unpredictables, both arising as they do with the unruly affordances of the network. The much celebrated public domain of open government data, usually meant for geeks and software gurus dedicated to the brave new 'codeful' future, has meant little for marginal subjects of India's development project. Data on government websites have been critiqued worldwide for often being too clunky to catalyse civic use or too obscure to pin down government efficacy. However, as an instrument of accountable governance, data in the public domain can help hold the line, fuelling vanguard action to foster democracy. Activists engaged in the right to food movement in India had reason to rejoice recently when the Supreme Court of India pulled up the central government for delay in release of funds under the MGNREGA scheme and violating the food security law. The series of actions leading to this victory enjoins deeper examination of the MGNREGS website, the design principles of the MIS that generates reports based on the data, and the truth claims that arose in the contingent context marking this struggle. What were the ingredients of this happy irony; the deployment of the master's tools to disband the master's house? What aesthetics and principles made for a public data structure that allowed citizens to hack into state impunity? And what do such practices around the digital tell us about the performativity of the Internet - not as a grand, open, phenomenon for the network to access the multitude, but as the inane, local, Sutradhar (alchemist who produces the narrative), who allows truths to be told?

Aishwarya Panicker

How Green is the Internet? The Good, the Bad and the Ugly

Groceries at your doorstep, data on your fingertips, an Uber at the tap of a button and information overload- human negotiations with the internet have definitely changed drastically in the past few decades. Research in the area, too, has transformed to not just the supply of internet to the masses, but has evolved to include innovative and revolutionary ideas in terms of internet infrastructure and governance. With over 3.2 Billion internet users in the world, and over 400 million of these from India, this is no surprise.

However, while environmental sustainability remains at the forefront of many-a-government, there is little data / debate / analysis / examination of the environmental impact of the internet. This is true especially for India. In 2011, Joel Gombiner wrote an academic paper on the problem of the Internets carbon footprint, with a premise based on the lesser known fact that the ICT industry has been ‘responsible for two to four percent of the global greenhouse gas emissions’- an area that the Climate Group’s Smart 2020 report had focused on back in 2008 as well. Clearly this is a war on the environment that is yet to receive large-scale attention.

How can we move beyond particular fascinations with the internet and engage holistically with the internet? By moving towards a dimension of internet infrastructure studies, that has large policy and implementation benefits. This paper, then, will seek to elucidate four central issue areas: first, as the third highest country in terms of internet use, what is the current environmental impact of internet usage in India? Second, are there any regulatory provisions that give prescriptive measures to data centres and providers? Third, do any global standards exist in this regard and finally, what future steps can be taken (by the government, civil society and individuals) to address this?

Deepak Prince

One of the most important effects of increasing internet connectivity coupled with universal electronic display screens, multimedia digital objects and supple graphic interfaces, is the proliferation of systems of enunciation. The business letter, typewriter, electric telegraph and radio, each in its own time, transformed how humans make sense in different forms of writing. Some of these survive to this day (forms of address from letters, the abbreviations and ‘cablese’ from telegraph operators etc). Now, we find new spaces of networked sociality emerging at rapid speeds, and everyday, we forget many others that are now outdated, no longer ‘supported’ or desired. How does one study this supple flow of discourse? Deleuze and Guattari’s concept of tracing collective assemblages of enunciation (the structuring structures of discourse) and Gilbert Simondon’s Law of relaxation (where technical elements created by complex ensembles are released into a path of technological evolution where they may or may not crystallize the formation of new ensembles) are two philosophical notions that seek to address this problem. The anthropologist Ilana Gershon suggests that new social media platforms like Facebook have a detrimental effect on sociality because they impose a neo-liberal notion of personhood on its users, through the interface. I take this as my point of departure, and based on ethnographic fieldwork conducted at a new media marketing agency, I attempt to draw out how ‘posting’ is modulated on facebook, about how subjectivity is configured within the complex matrix comprising a constant flow of posts, the economy of ‘liking’, algorithmic sorting and affects that do not cross the threshold of the screen.

Maitrayee Mukerji

By some latest estimates, around 35% of the population access the Internet in India using multiple devices. As Indians browse, search, transact and interact online, one can observe the increasing intertwining of the Internet in their everyday lives. But, how much do we know about the influence and impact of the Internet on Indian and in India? Advances in big data technologies provide an exciting opportunity for social science researchers to study the Internet. So, trends can be detected, opinions and sentiments can be calibrated, social networks can be discovered by using technologies for collecting and mining data on people online. But are social science researchers in India equipped enough to do a rigorous and detailed study of the India? Leaving aside debates on epistemology, ontology and methodology of researching Internet using big data analytics, the very first challenge is limited access to data. A cursory scan of the available research would indicate that the data – tweets, trends, comments, memes etc. have generally been collected manually. The bulk of the data is collected by private companies and available either at a price or by writing programs to access them through APIs. The latter allows only limited extraction of data and more often than not has a learning curve. Access to raw data, through institutional repositories or special permission, if available is only to select few. Legal and ethical issues arise if one considers scrapping websites for data. The essay is an attempt to articulate the challenges in accessing data while making attempts to study the Internet using big data analytics.

Muhammed Afzal P

Internet Memes as Effective Means of Social and Political Criticism

By looking at the user-generated memes posted from the Malayalam Facebook pages “Troll Malayalam” and “International Chalu Union”, this essay argues that political memes function as effective means of social and political criticism in Kerala. In a society where conversations often tend to feature examples from popular films, memes from these pages use images from popular culture including television to respond to current affairs as well as contemporary social and political questions. Often described mistakenly as 'trolls' by the practitioners themselves, a major portion of the memes have a progressive content in terms of discussing questions related to religion, sexuality, nationalism, etc. It won’t be an exaggeration to state that many Malayalis see these memes as instant 'news analysis' of current affairs. The argument of this essay will be advanced through an analysis of the memes that were produced in relation to contemporary socio-political and cultural questions such as beef ban, the rise of right-wing politics in Kerala, the question of religious conservatism, etc. Through this the essay seeks to investigate how internet memes creatively contribute to social movements and also to see how critical questions in cultural criticism are translated into "the popular.'

Dr. Ravikant Kisana

Archetyping the 'Launda' Humor on the Desi Internet

Humor on the internet has proven a massive social unifying force for young, upper class Indian millennials. The humor is not just consumed via Western (mainly US) humor collectives such as 9GAG, Cracked, etc - the proliferation of 'Indian' humor pages on the Facebook and the countless YouTube comedy channels is testament to the localisation of this content. However, the humor which is seen as a unifying force is largely 'launda' aka. 'heteronormative-upper caste-male' in its sensibilities. Comedy collectives like TVF, with its popular channel 'Q-tiyapa' had to create a separate handle 'Girliyapa' to cater to feminist themes. The idea is that humor by default is male, and 'feminist humor' needs a separate space.

This essay seeks to study the 'launda'-cultural attributes of online Indian humor. It will seek to document and wean archetypes of comedy tropes which fit this mode. The area of the documentation will be YouTube comedy channels and Facebook humor pages—however, the same can be extended to Twitter handles and the suchlike.

Siddharth Rao and Kiran Kumar

Chota Recharge and the Chota Internet

Uniform and affordable Internet is emerging as one of the fundamental civil rights in developing countries. However in India, the connectivity is far from uniform across the regions, where the disparity is evident in the infrastructure, the cost of access and telecommunication services to provide Internet facilities among different economic classes. In spite of having a large mobile user base, the mobile Internet are still remarkably slower in some of the developing countries. Especially in India, it falls below 50% even in comparison with the performance of its developing counterparts!

This essay presents a study of connectivity and performance trends based on an exploratory analysis of mobile Internet measurement data from India. In order to assess the state of mobile networks and its readiness in adopting the different mobile standards (2G, 3G, and 4G) for commercial use, we discuss the spread, penetration, interoperability and the congestion trends.

Based on our analysis, we argue that the network operators have taken negligible measures to scale the mobile Internet. Affordable Internet is definitely for everyone. But, the affordability of the Internet in terms of cost does not necessarily imply the rightful access to Internet services. Chota recharge is possibly leading us to chota (shrunken) Internet!

Smarika Kumar

Why Mythologies are Crucial to Understand Governance on the Internet: The Case of Online Maps

How does one study internet in India? This essay proposes to provide one possible answer to this question through its central argument that internet, like other technologies, is very much a part of a “mythological” or “fictional” narrative of the history of this country, and without an understanding of these mythologies, the development of internet governance in the country cannot be hoped to be understood. This central argument is traced in the essay through the debates and discussions on law and policymaking around online maps. The essay, in its first part, explores what a “mythological” account of the history of India might mean, and what role technological developments play in it. It does so by tracing the narrative of mapmaking in medieval India and its deep ties with magic, secrecy and mythical stories. It then surveys how modern mapping surveys in the colonial period interacted with the idea of the “native”, and argues that such interactions created a dichotomy between “native” sciences, folklore on the one hand, and colonial achievements, national security on the other. It argues that it is this latter strand of a certain “national security” vision of technology which found dominant voice in the regulation of maps in India post-independence, yet the sense of the unknown, mystical, or “mythological” in such technological deployment as mapmaking requires, survived. The essay finally uses such evidence to trace how even in online interactions, and internet governance design in India- this aspect of the mystical and the fear of it often sustains, driven by a (repressed?) memory of mythology, through the use of analogies. And it is within this twilight zone, within this frontier between “mythology” and nation-building, that a governance design for online maps is being presently constructed in India. The essay then argues that it becomes crucial to understand such mythologies around technology generally and internet specifically and the manner they interact with law and policymaking in order to really get a sense of a 21st century India’s experience of the internet.

Sujeet George

Understanding Reddit: The Indian Context

Even as social networking sites like Facebook and Twitter seek to carve a niche within the Indian social media landscape, the presence and impact of news aggregator website reddit seems relatively unnoticed. Known for its excessive self-referentiality and inability to emerge from a restricted pool of informational flow, reddit nevertheless has come to be a major focal point of convergence of news and public opinion, especially in the United States. The web interface, which allows for users with overlapping interests to converge under a common platform namely the “subreddit,” allows the possibility of understanding questions of user taste and the directions in which information and user attention flow.

This paper seeks to offer a preliminary gesture towards understanding reddit’s usage and breadth in the Indian context. Through an analysis of the “India” subreddit and examining the manner and context in which information and ideas are shared, proposed, and debunked, the paper aspires to formulate a methodology for interrogating sites like reddit that offer the possibilities of social mediation, even as users maintain a limited amount of privacy. At the same time, to what extent can such news aggregator sites direct the ways in which opinions and news flows change course as a true marker of information generation responding to user inputs.

Supratim Pal

India, being a multilingual country, owes a lot to the Internet for adding words to the vocabulary of everyday use in different languages.

This paper would critically examine how Net words like "selfie", "wall", "profile" and others have changed the way Indians write or talk. For example, a word like "nijaswi" was not there in Bengali language five years back but is used across several platforms as a translation of "selfie".

On one hand, computer-mediated communication (CMC) has helped us to express in short messages and on the other, we all have picked up use of punctuation marks like colon or a semicolon to express our emotion - which have got another name, "emoticons".

The paper would be more practical in approach than theoretical. For example, it would feature chat (another example of CMC) conversations 10 years ago when hardly an emoticon was used, and that of today's when we cannot think of a chat without a "smiley" or a "sticker". Even the linguist, David Crystal, probably could not have thought that in 15 years, the language (not just lingua franca, English) would change worldwide since he first tried to theorize Internet language in 2001.

Today, a linguist need not to have a proper publication to introduce a word in any language but Netizens can re-invent words like "troll" or "roast" to criticize one or "superlike" to celebrate an achievement or even "unfriend" someone to just relax.

Surfatial

Surfatial is a trans-local collective that operates through the internet. We use conversations to aid learning outside established structures. We are concerned with enabling disinhibition through the internet, for expressing what may not be feasible in physical reality. What role does partial or complete anonymity play in this process of seeking “safe” zones of expression? Fake profiles on social media offer such zones, while perhaps also operating to propagate, mislead or troll.

Our essay would argue:

That there is a desire to participate in speculative fora in the Indian cultural context and the internet has created space for philosophical questioning among contemporary Indian participants which can develop further, despite common assertions that online spaces are largely uncivil and abusive.
That anonymous and pseudonymous content production offers a method for exploring and expressing with a certain degree of freedom.
Spam-like methods used in sub-cultural outreach efforts on social media have proved effective in puncturing filter bubbles.

Our essay would be drawn from experiments via Surfatial’s online engagement platforms (Surfatial’s Study groups and post_writer project) to examine:

Extent of participation.
Disinhibition facilitation and dialoguing.
Reach.
Emergence and development of ideas.
Creating an archive of internet activity and re-processing it into new forms of presentation.

For more details visit https://cis-india.org/raw/studying-internet-in-india-2016-selected-abstracts

How are Indian Newspapers Adapting to the Rise of Digital Media?

sumandro — 2016-07-06T14:28:13Z

How are Indian newspapers adapting to the transition to digital news production, distribution, and consumption? How are they changing their journalistic work, their newsroom organisations, and their distribution strategies as digital media become more important? These are the questions we are pursuing in a joint pilot project with the Reuters Institute for the Study of Journalism, University of Oxford.

Cross-posted from the Reuters Institute for the Study of Journalism.

The Indian newspaper market is vibrant and diverse, and rising print circulation has so far shielded it from the digital disruption the industry has faced in many high income countries.

But internet access and use is rapidly growing in India, driven especially, by cheap smartphones and mobile web access. And both attention and advertising is moving to digital media.

How are Indian newspapers adapting to this change? How are they changing their journalistic work, their newsroom organisations, and their distribution strategies as digital media become more important? These are the questions we are pursuing in a joint pilot project with the Reuters Institute for the Study of Journalism, University of Oxford.

As part of the project we are interviewing editors and journalists working with newspapers in English, Hindi and Malayalam (one newspaper for each language) to better understand how different Indian newspapers are adapting to the rise of digital media.

The study will result in a joint report published by the Reuters Institute for the Study of Journalism at the University of Oxford that we hope will help Indian journalists and newspapers as they navigate their digital transition, their colleagues elsewhere in the world facing similar issues, and academics and media policy makers keen to understand how the development of digital media—and the ways in which other actors respond to these developments—are reshaping our information environment.

We expect to publish the report in December 2016. The research team includes Zeenab Aneez and Sumandro Chattapadhyay from CIS, and RISJ Director of Research Rasmus Kleis Nielsen. Vibodh Parthasarathi from CCMG, Jamia Millia Islamia, will contribute to the study as an advisor.

The project builds on a recently completed study of "Digital Journalism Start-Ups in India" conducted by Arijit Sen and Rasmus Kleis Nielsen.

For more details visit https://cis-india.org/raw/how-are-indian-newspapers-adapting-to-the-rise-of-digital-media

RBI and Regulation of Digital Financial Services in India, 2012-2016

Shivalik Chandan — 2016-07-11T06:27:23Z

The Reserve Bank of India (RBI) published its first guideline on mobile banking in 2008, and the conversation on integrating Aadhaar numbers with bank account numbers on one hand and mobile numbers on the other started as soon as UIDAI was established. However, it is the post-2010 period, with rapid growth of the e-commerce sector in India, that saw rise of digital financial services and intermediaries, and hence the demand for regulatory intervention in the sector. This essay by Shivalik Chandan tracks RBI policies and guidelines responding to and shaping the regulatory framework of the digital financial sector in India, including both mobile banking and online transactions.

1. Introduction

2. Mobile Banking in India

2.1. Customer Enrolment Issues identified by the RBI

2.2. Technical Issues identified by the RBI

2.3. The Way Forward

3. Online Payments in India

3.1. Regulatory Response to Online Payment Instruments

3.2. Infrastructure for Online Payments between Private Parties

3.3. Infrastructure for Online Payments involving the Government

3.4. The Way Forward

4. Peer-to-Peer (P2P) Lending

5. Conclusion

6. Endnotes

7. Author Profile

1. Introduction

The advent of new technology usually leads to innovation in industry. Regardless of the sector, new technology is almost always adopted to make tasks easier and more efficient, and this applies to the financial sector as well. Advancements such as credit cards and ATMs have fundamentally changed the process of banking and finance. The past few years have seen some major innovation in the sector, leading to a shift in the way people interact with the financial system of the country. Pursuant to the same, the Reserve Bank of India has responded to these advancements to make sure that they do not go unchecked.

The e-commerce industry in India has seen unprecedented growth over the last few years, largely because of a higher level of internet penetration among the population. From a worth of $3.9 billion in 2009, the worth of the Indian e-commerce market went up to $12.6 billion in 2013 [1]. The number of online shoppers was 35 billion in 2014, and is now expected to cross 100 million by the end of this year [2]. The newfound presence of the e-commerce industry in the country has led to a new form of payment: the online wallet. A more convenient method than using a credit card for every transaction, it is expected to achieve a compound annual growth rate of 68% this year [3].

A priority of the RBI since the mid-2000s has been financial inclusion. The term is usually defined with respect to financial exclusion, which is construed as the inability to access necessary financial services in an appropriate form due to problems associated with access, conditions, prices, markets, or self-exclusion. In contrast, financial inclusion is the delivery of financial services at affordable costs to disadvantaged sections of society. There is no single metric that can determine the amount of financial inclusion, and specific indicators such as number of bank accounts and number of bank branches only provide a partial picture [4].

In 2013, CRISIL launched an index (Inclusix) to measure the status of financial inclusion in India. The index combines branch penetration, deposit penetration, and credit penetration into one metric. The report was the first regional, state-wise, and district-wise assessments of financial inclusion ever measured, and the first analysis of inclusion trends over a three-year period. Some key conclusions found in the report were [5]:

The all-India CRISIL Inclusix score of 40.1 is low, though there were clear signs of progress – this score had improved from 35.4 in 2009.
Deposit penetration is the key driver of financial inclusion – the number of savings accounts (624 million), is almost four times the number of loan accounts (160 million).

2. Mobile Banking in India

Perhaps the biggest change in banking in recent times has been the introduction of mobile banking. The RBI issued its first set of regulatory guidelines to do with mobile banking in 2008, where banks were permitted to transfer funds from one bank account to another through the mobile platform. From 2010 to 2012, the number of users of mobile banking services grew 277.68% (from 5.96 million to 22.51 million) and the value grew a whopping 875.6% (from Rs. 6.14 billion to Rs. 59.90 billion). These figures clearly indicate that mobile banking in the country is growing at a very high rate. Yet, as of 2014, there were 350 to 500 million unique mobile subscribers and only 22 million mobile banking customers [6].

The RBI clearly recognised the potential for a widespread increase in mobile banking as well as the opportunity of increasing financial inclusion in the country, and made recommendations for “addressing the consumer acquisition challenges as well as the technical aspects” [7]. Recommendations such as alternate channels for mobile registration such as ATMs, uniformity in the mobile registration process across banks, and standardisation and simplification of the MPIN generation process were made by the RBI. Despite the potential in mobile banking as a channel for financial services, and financial inclusion, the RBI identified several challenges with the platform, which were of two types – customer enrolment related issues, and technical issues.

2.1. Customer Enrolment Issues identified by the RBI

The following customer enrolment issues were identified by the RBI:

Mobile Number Registration: In order to avail mobile banking services, the customer needs to go to a branch of the bank or an ATM of that bank to register their mobile number. The RBI recommended that registration be made possible through other channels as well, and that registration forms be made uniform to ease the customer experience.
MPIN Generation: The process for MPIN generation is different across banks, and requires a visit to the bank branch in some cases. The RBI recommended that the process be standardised and that the MPIN be intimated to the customer through their handset without necessitating a visit to the bank.

These recommendations were implemented by the RBI in its Master Circular issued in December 2014 [8].

2.2. Technical Issues identified by the RBI

One of the major technical issues identified by the RBI was the fact that there is a large disparity in the type of mobile handset, and consequentially, the technology most customers have. The majority of handsets in the country are GSM or CDMA enabled, and a comparatively small number have GPRS technology. The RBI identified three major ways of mobile banking utilised by most banks as SMS, USSD, and application based banking. The problems the RBI identified with the SMS method were that the service is not encrypted, and that it may become inconvenient for customers to remember the syntax required for the commands. The USSD system solves the complexity issue, as it presents an interactive menu and is much faster than SMS. However, it is still not a secure means of communication. A big step forward for the USSD system has been the implementation of the National Unified USSD Platform by the National Payments Corporation of India with a single short code (*99#) to utilise the common USSD channel for mobile banking for all banks [9].

The RBI conceded that application based mobile banking is the best way to offer the service both in terms of user friendliness as well as security, but stated that developing these applications requires a large amount of research and development due to the extremely high number of permutations and combinations of handsets and operating systems available on the market, and that smartphones are in the minority as far as type of handsets go. To resolve these issues, the RBI suggested that banks continue offering all three services, so that the largest number of people can take advantage of mobile banking services. The RBI also recommended that all banks implement a uniform mobile banking system across all three architectures (SMS, USSD, and applications) for the ease of consumers [10].

2.3. The Way Forward

In the two years since these recommendations were published, smartphones and GPRS connections (both required for application-based mobile banking) have become a lot cheaper and have permeated a larger section of the Indian society. Hopefully, this trend will gradually reflect in the banking sector and lead to a boom in application-based mobile banking. The next challenge that the RBI will face in the coming years in the field of mobile banking is the replacement of credit cards with smartphones. Both Apple and Google (with Apple Pay and Android Pay) are utilising NFC technology in smartphones to enable customers to store their credit card information on their smartphone and simply tap it onto a terminal to complete the transaction, and even though it is available in a small number of countries presently, it is only a matter of time before it is introduced in India, and this development has been addressed by the RBI in the ‘Vision 2012-2015’ document, where they have addressed the requirement of updating all PoS terminals at the merchant ends, as well as developing an open standard for all NFC transactions, regardless of the payment system operators [11].

The RBI has announced its intention to review the guidelines for mobile banking to address issues relating to customer registration, safety and security of transactions, risk mitigation, and customer grievance redressal measures, with the intention of promoting mobile phones as access channels to payment and banking services. The policy efforts will also focus on ensuing that mobile banking services are provided to non-smartphone users across the country as well [12].

3. Online Payments in India

The National Payments Corporation of India was set up in 2009 as an umbrella organisation for all retail payment systems (under section 25 of the Companies Act) with the core objective of consolidating and integrating the multiple systems with varying service levels into a nation-wide, uniform, and standard business process for all retail systems [13, 14]. In 2012, the RBI, in its Vision 2012-2015 document, recognised the development of new e-payment systems and the increasing proportion of transactions taking place through these systems. The introduction of technology such as cloud computing, mobile telephony, service oriented architecture, and an increasing popularity of the virtual world would, according to the RBI, lead to significant changes in the way payments would be processed in the future. The document elucidated the possibility of the movement away from cash transactions to electronic transactions, leading to their goal of a ‘less-cash economy’ [15]. The RBI set the objective of innovating towards the convergence of products and services which should be available across all delivery channels to all, in a low-cost, safe, and efficient manner. The RBI held that its regulatory stance would be to promote innovation to achieve the goals of inclusion, accessibility, and affordability, while remaining technology neutral [16].

3.1. Regulatory Response to Online Payment Instruments

The introduction of online wallets has provided consumers with a simpler and more efficient method to complete online transactions across a wide variety of merchants, and is growing at a considerable rate. A master circular was issued by the RBI in December 2014, outlining the guidelines that these wallets (which are considered a part of ‘pre-paid payment instruments’) must follow. In the circular, RBI defined three types of payment instruments or wallets.

Closed wallets can be issued by a company to a consumer for buying goods exclusively from that company, such as Flipkart or Amazon. They do not need any sort of permission or regulation from the RBI as they do not permit cash withdrawal or redemption, and hence are not classified as payment systems.
Semi-closed wallets can be used to purchase goods and services at clearly identified merchant locations which have a specific contract with the issuer to accept the payment instrument. NBFCs can issue semi-closed wallets which need to be authorised by the RBI. The most commonly known online wallets (such as Paytm and Mobikwik) fall under this category.
Open wallets can be used for the purchase of goods and services (including financial services) at any card accepting merchant terminal and can also be used for cash withdrawal at ATMs. However, these can only be issued by banks with approval from the RBI [17].

The RBI has classified three categories of pre-paid payment instruments that can be issued:

Up to Rs. 10,000, by accepting the minimum details of the customer, provided that the amount outstanding at any time does not exceed Rs. 10,000 and the total value of reloads per month does not exceed Rs. 10,000. These can only be issued in electronic form.
From Rs. 10,001 to Rs. 50,000, by accepting any ‘officially valid document’ defined under rule 2(d) of the PML Rules, 2005, which are amended from time to time. These are to be non-reloadable in nature.
Up to Rs. 1,00,000 with full KYC, and these can be reloadable in nature. The balance in the PPI should not exceed this amount at any time [18].

3.2. Infrastructure for Online Payments between Private Parties

Pursuant to the goal of enabling infrastructure for financial transactions between private parties, the NPCI implemented the Immediate Payment Service (IMPS) in 2010. The service offers an instantaneous, 24x7 interbank electronic fund transfer service, which can be utilised through mobile, internet, or an ATM. This service is superior to the previously used NEFT service, as NEFT transactions are settled in batches and hence are not in real time. Also, the NEFT service is only available during the working hours of the RTGS system, while the IMPS can be used at any time [19].

Building on the IMPS service, the NPCI has developed the Unified Payments Interface (UPI), which will allow customers to transfer money and make payments almost as easily as they send messages. Multiple bank accounts can be linked to one application, and the need for sharing sensitive information such as bank account numbers, OTPs, or mobile numbers has been eliminated. This interface has been touted to have a large impact on the payment space, and help the economy move closer to a ‘less-cash’ economy [20]. On launch of the Interface in April of this year, 29 banks concurred to provide UPI services to their customers, and 21 of those banks have already joined the UPI as payment service providers.

On downloading the UPI application of a bank, a ‘virtual identifier’ is generated by the application which works as a payment identifier for sending and collecting money, and is protected by a single click two-factor authentication. The virtual ID is an email ID-like format: for example, if a customer named ABC had an account in HDFC bank, his virtual ID would be ABC@hdfc. However, the customer has the choice to use his/her mobile number or Aadhar number in place of the name. In order to protect the customer’s privacy, there is no account number mapper anywhere except the customer’s bank. When a customer selects UPI as the payment mode for an online transaction and the request reaches the merchant’s server, it is immediately passed onto the acquiring bank’s server where a UPI collection transaction is initiated on the customer’s virtual identifier. This request reaches the customer’s phone through the UPI server on the basis of the virtual identifier, and the customer authenticates it using the MPIN to complete the transaction [21].

The UPI can be utilised for real-world transactions as well. Instead of handing over cash, the customer can simply tell the cashier his/her virtual ID. The cashier can then initiate a pay request through the UPI, and the customer can authenticate it on his/her phone, leading to the completion of the transaction [22].

3.3. Infrastructure for Online Payments involving the Government

In the ‘Vision 2012-2015’ document, the RBI outlined an opportunity of developing a bill payment system for payments toward insurance premiums, utility payments, taxes, school fees, etc. To this end, a committee was set up to analyse the potential for an electronic GIRO (General Interbank Recurring Order) payment system in India. Under the recommendation of the Committee, a Giro Advisory Group (GAG) was set up with the objective of defining a framework which enables the creation of pan India touch points for bill payments, which submitted its report in March 2014. The GAG recommended a tiered system for bill systems in the country – a central unit which would set the standards, and various operating bodies which would work in accordance with the standards set by the central body. Draft guidelines for the Bharat Bill Payment System (BBPS) were published on the RBI website in August 2014 for public comments. Based on recommendations, the RBI published guidelines for the implementation of the BBPS in November 2014.

The BBPS will consist of two types of bodies, which will carry out distinct functions:

Bharat Bill Payment Central Unit (BBPCU): The single authorised body which will set the necessary technical, operational, and technical standards for the entire system and its participants, and will also undertake clearing and settlement activities. The NPCI will serve as the BBPCU.
Bharat Bill Payment Operating Units (BBPOU): The authorised operational units, which will work in adherence to the standards set by the BBPCU.

The objective of the BBPS is to implement an integrated bill payment system which offers interoperable and accessible bill payment systems to customers through a network of agents, enabling multiple payment modes, and providing instant confirmations of the payments. Hence, the RBI decided that all existing players (both banks and non-banks) catering to the requirement of bill payments as well as the aggregation of payment services will be a part of the BBPS [23]. Initially, the BBPS is expected to cover repetitive payments for everyday utility services such as electricity, water, gas, telephone, and DTH. The plan is to gradually expand the scope to include other types of repetitive payments like school/university fees, municipal taxes, etc.

On 20 October, 2015, the RBI issued a press release inviting applications from entities engaged in bill payments, for authorisation to operate as BBPOUs, stating the function as “facilitating collection of repetitive payments for everyday utility services, such as, electricity, water, gas, telephone and Direct-to-Home (DTH)” [24].

As of May 2016, 33 companies were reportedly approved by the RBI to function as BBPOUs. PayU India, PayTm, Oxigen, SBI, ICICI bank, HDFC bank, Kotak Mahindra Bank, Bank of Baroda, Axis Bank and RBL Bank and TechProcess have confirmed their BBPOU license [25]. The system is expected to launch in July this year [26].

3.4. The Way Forward

The RBI, in its ‘Vision 2018’ document, has outlined the future plans relating to pre-paid instruments. With an increase in the number of entities authorised to issue PPIs, there has been a growth in their usage for the purchase of goods and services as well as transfer of funds. The RBI plans to review the provisions relating to PPIs about KYC requirements, customer-facing aspects such as safety and security, risk mitigation measures, complaint redressal mechanisms, forfeiture of unutilised balances, and fraud monitoring. The RBI also plans to monitor developments in technology which impact the financial services industry, such as distributed ledgers, blockchain, etc. and develop regulatory frameworks as required [27].

4. Peer-to-Peer (P2P) Lending

Another new development in the banking and finance sector is the introduction of peer to peer lending (hereinafter referred to as P2P lending). P2P lending is a form of crowdfunding which is essentially an online platform designed to bring together lenders and borrowers. A fee is charged from both and this fee goes to providing services such as collecting loan repayments and doing a preliminary assessment on the trustworthiness of the borrower. The RBI issued a consultation paper on this in April 2016 and invited responses from the various stakeholders.

The RBI identified that even though there is no credible data on the total lending through P2P platforms, close to 20 P2P lending platforms were launched in the last year, and there are presently around 30 such platforms in the country. After looking at the operational business model of these companies, the RBI found that the major regulatory concerns would relate to KYC and recovery practices.

After holding that regulation might lend credibility to P2P lending and therefore cause low-awareness lenders to make high-risk investments, and might stifle the growth of an innovative and efficient avenue for borrowers who either do not have access to or have been rejected by traditional loan mechanisms, the RBI argued for regulation in the following ways. Firstly, they held that in its nascent stage, the industry might disrupt the financial sector and it would be better to avoid such disruption. Secondly, the lower operational costs might lead to a softening of lending rates, and the RBI feels that it would benefit the P2P lending platforms if they were regulated. Thirdly, they identified the potential for unethical practices being adopted by any of the players in the market in the absence of regulation. Finally, the RBI held that borrows and lenders which are brought together by the P2P platform might be perpetrating an illegality under Section 45S of the RBI Act if they are unregulated.

Based on these considerations, the RBI recommended regulations on the P2P platforms in order to “facilitate the orderly growth of this sector so that its ability to provide an alternative avenue for credit for the right kind of borrowers is harnessed.” Some of the regulations proposed by the RBI were the limiting of P2P lending platforms to the role of an intermediary between lenders and borrowers, a requirement of a minimum capital of Rs. 2 crore and prudential limits on the maximum contribution by a lender (since they may include uninformed individuals), and the enforcement of adequate risk management systems to ensure smooth operations [28].

5. Conclusion

The RBI, setting out a goal of financial inclusion and a less-cash economy, has kept up with developing technology in the financial sector, in order to ensure that consumers can glean the benefits of these advancements, and the goals it set out can be achieved.

Mobile banking is one of the largest opportunities for financial inclusion in countries, and the RBI, through its policy efforts, is trying to ensure that it reaches maximum penetration in the country. E-commerce is growing in the country, leading to a new financial space being created, which the RBI is privy to. The NPCI has been a boon in this sector, achieving a considerable amount since it was launched. P2P lending, a new and relatively untested development is gaining momentum in the country, and the RBI has begun to take concrete steps to make sure it does not get out of hand.

Technological advancements will continue to change all industries, including the financial services industry, and it is the task of the RBI to make sure that these advancements are utilised to the best of their abilities, so as to benefit the customers in the country as best as possible.

6. Endnotes

[1] PwC, (2014). Evolution of E-commerce in India. [online] Available at: http://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdf [Accessed 6 Jul. 2016].

[2] The Times of India. (2014). "Online shoppers in India to cross 100 million by 2016: Study."[online] Available at: http://timesofindia.indiatimes.com/tech/tech-news/Online-shoppers-in-India-to-cross-100-million-by-2016-Study/articleshow/45217773.cms [Accessed 6 Jul. 2016].

[3] Singh, A. (n.d.). "Mobile Wallets – Market, Opportunities and Challenges." [online] Altimetrik.com. Available at: http://www.altimetrik.com/wisdometrik/mobile-wallets-market-opportunities-and-challenges/ [Accessed 6 Jul. 2016].

[4] Thorat, Usha. (2008). "Financial Inclusion and Information Technology". Keynote address by Deputy Governor of the Reserve Bank of India, at the "Vision 2020 – Indian Financial Services Sector" event hosted by NDTV, in Mumbai, September 12. Available at: http://www.bis.org/review/r080917d.pdf [Accessed 6 Jul. 2016].

[5] CRISIL, (2013). "Finance Minister launches ‘CRISIL Inclusix’." [online] Available at: http://www.crisil.com/Ratings/Brochureware/News/CRISIL-Inclusix-launch-pr_250613.pdf [Accessed 8 Jul. 2016].

[6] Reserve Bank of India, (2014). Mobile Banking - Report of the Technical Committee. [online] Available at: https://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=760 [Accessed 6 Jul. 2016].

[7] Ibid.

[8] Reserve Bank of India, (2014). Master Circular - Mobile Banking Transactions in India - Operative Guidelines. [online] Available at: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/65MNF052B434ED3C4CE391590891B8F3BE66.PDF [Accessed 8 Jul. 2016].

[9] National Payments Corporation of India. (n.d.). "Overview of *99# Service." [online] Available at: http://www.npci.org.in/Product-Overview-NUUP.aspx [Accessed 8 Jul. 2016].

[10] Supra note [6].

[11] Reserve Bank of India, (2012). Payment Systems in India: Vision 2012-15. [online] Available at: https://www.rbi.org.in/Scripts/PublicationVisionDocuments.aspx?Id=678 [Accessed 6 Jul. 2016].

[12] Reserve Bank of India, (2015). Payment and Settlement Systems in India: Vision 2018. [online] Available at: https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/VISION20181A8972F5582F4B2B8B46C5B669CE396A.PDF [Accessed 6 Jul. 2016].

[13] National Payments Corporation of India. (n.d.). "About Us - National Payments Corporation of India." [online] Available at: http://www.npci.org.in/aboutus.aspx. [Accessed 6 Jul. 2016].

[14] See also: Bihari, D. and Chandra, S. (2015). "The Electronic Banking Revolution in India." Journal of Internet Banking and Commerce, [online] (20), p.110. Available at: http://www.icommercecentral.com/open-access/the-electronic-banking-revolution-in-india.php?aid=59261#corr [Accessed 8 Jul. 2016].

[15] The term ‘less-cash economy’ was possibly first used in the context of national regulatory framework by the Bank Indonesia in 2006, and was implemented through the ‘Ayo ke Bank’ program [http://www.adb.org/sites/default/files/publication/156004/adbi-wp149.pdf]. Its usage by the European Payments Council in 2009 [http://www.sepaitalia.eu/uploads/making_sepa_a_reality_v.3.pdf], and the Aite Group in context of the USA [http://aitegroup.com/report/less-cash-society-forecasting-cash-usage-united-states] gave it international attention. RBI first used the term in its 'Payment Systems in India: Vision 2012-15' document.

[16] Supra note [8].

[17] Reserve Bank of India, (2014). Master Circular – Policy Guidelines on Issuance and Operation of Pre-paid Payment Instruments in India. [online] Available at: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/116MCPPI20062014FL.pdf [Accessed 6 Jul. 2016].

[18] Supra note [9].

[19] National Payments Corporation of India. (n.d.). "IMPS - Background." [online] Available at: http://www.npci.org.in/aboutimps.aspx [Accessed 6 Jul. 2016].

[20] Nair, V. (2016). "NPCI’s unified payment interface to start in April." [online] Available at: http://www.livemint.com/Industry/ZA9pPkeGdY9wrChh1BDQhN/NPCIs-unified-payment-interface-to-start-in-April.html [Accessed 6 Jul. 2016].

[21] Mathew, G. (2016). "Unified Payments Interface system: Faster, easier and smoother."[online] The Indian Express. Available at: http://indianexpress.com/article/technology/tech-news-technology/unified-payments-interface-upi-payment-system-faster-easier-and-smoother-2754125/ [Accessed 7 Jul. 2016].

[22] The Hindu. (2016). "RBI's Unified Payments Interface makes payments easier than ever." [online] Available at: http://www.thehindu.com/business/Economy/unified-payments-interface/article8470746.ece [Accessed 7 Jul. 2016].

[23] Lakshminarasimhan, P. (2016). "Bharat Bill Payment System likely to be launched in July." [online] The Financial Express. Available at: http://www.financialexpress.com/article/industry/companies/bharat-bill-payment-system-likely-to-be-launched-in-july/257040/ [Accessed 7 Jul. 2016].

[24] Reserve Bank of India, (2015). "RBI invites Applications for authorising Bharat Bill Payment System Operating Units (BBPOUs)." [online] Available at: https://www.rbi.org.in/Scripts/FS_PressRelease.aspx?prid=35274&fn=9 [Accessed 7 Jul. 2016].

[25] Srivastava, V. (2016). "RBI Grants License to 33 Companies For Bharat Bill Payment System." [online] Thetechportal.com. Available at: http://thetechportal.com/2016/05/17/rbi-grants-license-33-companies-operate-bharat-bill-payment-system/ [Accessed 7 Jul. 2016].

[26] Supra note [23].

[27] Supra note [10].

[28] Reserve Bank of India, (2016). Consultation Paper on Peer to Peer Lending. [online] Available at: https://rbidocs.rbi.org.in/rdocs/Content/PDFs/CPERR280420162D5F13C3A2204F4FB6A2BEA7363D0031.PDF [Accessed 6 Jul. 2016].

7. Author Profile

Shivalik Chandan is a student at National Law University, Delhi, who has completed two years of the B.A. LLB course. He enjoys watching movies, playing the drums, and listening to (almost all genres of) music in his spare time.

For more details visit https://cis-india.org/raw/rbi-regulation-digital-financial-services-in-india-2012-2016

Metaphors of Work, from ‘Below’

Aayush Rathi and Ambika Tandon — 2023-07-03T12:29:29Z

Aayush Rathi and Ambika Tandon authored a chapter that describes platforms as more than technological interfaces. The chapter invokes some of the metaphors that gig workers use to make sense of platforms. This chapter was part of an edited volume published by Springer. This chapter forms part of the ‘Labour Futures’ research project, hosted at the Centre for Internet and Society, India, and supported by the Internet Society Foundation.

Various disciplines have produced literature on digital platforms—broadly categorised as technological interfaces enabling the exchange of goods and services — with little consensus on what platforms are and how they impact economic and labour systems. Features that are commonly associated with platforms include their role in increasing efficiency in supply chains, their deployment of cutting-edge technology, and their ability to ‘disrupt’ existing modes of provision of services and goods (Jarrahi & Sutherland, 2019). The use of metaphors and carefully curated taxonomy has been crucial in cementing this idea of the digital platform as a technological layer objectively matching supply and demand (Gillespie, 2017). This chapter seeks to document and understand how workers experience different types of digital platforms, and how workers’ imaginaries of platforms differ from popular and academic conceptions.

Click to read more

For more details visit https://cis-india.org/raw/springer-platformization-and-informality-chapter-metaphors-of-work-from-below

Blinkit protests: For gig workers, there is no income security – and little legal recourse

Aditi Surie and Ambika Tandon — 2023-07-04T07:30:52Z

Aditi Surie and Ambika Tandon co-authored an opinion essay on the reasons behind a week-long strike by workers of Blinkit — a popular hyperlocal delivery platform. The protests were in response to changes in Blinkit’s policies that will halve workers’ pay.

The article was published in the Indian Express on April 20, 2023.

By calling themselves 'intermediaries' platforms are reducing workers' incomes, increasing labour insecurity.

Blinkit delivery agents have been on strike for a week as a reaction to changes that will halve their monthly incomes. The protests started after the company changed the basis on which they will get paid, and how much they will get paid. These two factors: The calculation of “wages” and the actual sum of money earned have been at the heart of many gig worker protests over the years. Uber and Ola drivers have protested about big drops in their income over the years. The Blinkit protests last week are a reminder of the kind of problems that are specific to gig-platform workers. Gig-platform worker wages can be changed quickly, and are at the mercy of much larger forces in a platform company like Blinkit.

Despite being labelled self-employed independent contractors by companies, platform workers have little control over their terms of work. They have to get used to platforms dictating how much they earn per task if they want to work. But to change the entire structure of pay has made many workers feel defrauded and lied to. Until these changes, Blinkit used to pay workers through an assured base pay of Rs 25 with incentives on top that nudged workers to work more, faster, or on particular days. As per workers’ accounts, this allowed them to earn Rs 6,000 to 7,000 a week with a degree of certainty, with Rs 1,400 to 1,500 being spent on fuel and other expenses. The base pay had already been reduced last year from Rs 50 despite rising fuel costs and inflation driving up costs of survival. In the current instance of policy change, the company provided no prior information to workers that they would, now, be paid for each kilometre they drive. Platforms like to call this “effort”-based pay. The effort here is how far your motorcycle runs and has little to do with how much real effort it takes to complete a delivery. For Blinkit, which provides grocery delivery within a 2-km radius, the chance for workers to make a secure income is low. Their incomes also depend on the rate for each kilometre ridden. This rate always changes, but most delivery agents do not know when it will change. It can change at any given day or week, or time in the day so that there is no surety on how much a worker will take home any given week.

Incentive-driven payout structures have “gamified” platform work, such that workers are forced to compete for an increasing number of tasks within compressed periods with the promise of bonus pay. These structures are constantly shifting, with workers complaining that companies reduce their task allocations so they are unable to meet their incentives. This level of volatility and uncertainty is a hallmark of taxi and delivery platforms.

To access the full article, log on to Indian Express web page

For more details visit https://cis-india.org/raw/indian-express-aditi-surie-and-ambika-tandon-april-20-2023-blinkit-protests-for-gig-workers-there-is-no-income-security

Gender and collective bargaining in the platform economy: Experiences of on-demand beauty workers in India

Abhishek Sekharan, Chiara Furtado and Ambika Tandon — 2023-07-03T16:40:58Z

Abhishek Sekharan, Chiara Furtado, and Ambika Tandon contributed an essay on gender and collective bargaining in the platform economy in India, reflecting on the experiences of women beauty workers who organised India’s first women-led movement of platform workers. The essay has been published as part of an online collection of essays from contributors across the world and has been curated by the Digital Future Society Think Tank (Barcelona, Spain).

In October 2021, women beauty workers from Urban Company (UC), India’s premier platform providing at-home personal services, organised outside their head office in Gurugram to protest their unfair working conditions and lack of social security. Among their demands were the need to reduce and stabilise exorbitant platform commissions, remove arbitrary workforce management practices, reinstate control over working hours, and develop effective grievance redressal and support helplines to aid workers’ safety.

This was a first-of-its-kind resistance led by women workers in India’s booming platform economy. Many of the demands put forth by these workers are reflective of issues that commonly impact women’s labour force participation.

Women face considerable entry barriers in the platform economy, which is reflected in their low participation in ride-hailing and delivery — sectors that engage a majority of the gig workforce (ILO 2021). Instead, women are predominantly employed in historically feminised sectors such as domestic work, healthcare services, beauty work, and online tutoring.

Click here to read the full essay.

For more details visit https://cis-india.org/raw/gender-and-collective-bargaining-in-the-platform-economy

Gig Workers Are Being Stabbed, Beaten, and Abused in India

Varsha Bansal — 2023-07-04T06:04:07Z

An Uber driver was mugged. An Ola driver was beaten and left in a coma. Platform workers say tech companies are doing little to protect them.

Aaysh Rathi, was quoted in a news article on the violence that platform workers face in their line of work. Wired UK published the article, as part of the Pulitzer Centre’s support for reportage on the harms of technological systems.

Rathi says that a responsive grievance mechanism for gig workers is “completely absent” and continues to be “one of the top three demands” that workers have. “The firms are able to provide more responsive services to customers,” he says. “The workers are as important if not more [than customers], and they should be able to extend the same kind of mechanisms, practices, and policies to workers.”

"For one in three people while going to work fearing that they might be robbed today or face physical assault is alarmingly high."

Click to read the full article published in the Pulitzer Center on April 12, 2023

For more details visit https://cis-india.org/raw/wired-uk-april-12-2023-varsha-bansal-gig-workers-are-being-stabbed-beaten-and-abused-india