While the use of digital systems (credit cards, debit cards and national electronic funds transfers) has risen significantly, there has also been a concomitant increase in cyberfraud targeting digital users. Conviction rates for cyberfraud have been low. The complexity of the crimes committed could be a reason.
In FY20, the number of new retail digital payments breached the 30 billion mark and the value of such transactions went past the ₹3 lakh billion mark for the first time in India.
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In FY18, 6,885 cases of cyberfraud were taken up for investigation, a 35% increase from the previous year. Frauds related to online banking recorded the highest increase of 62%.
At the end of FY18, about 64% cases were pending police investigation; only 16.2% of OTP frauds were chargesheeted. Also, 95.9% cases were pending in courts; not one case ended in a conviction.
Cash is still the king
While digital payments have increased, cash continues to be the preferred mode of transaction.
The currency in circulation to GDP ratio increased to its pre-demonetisation level of 12% in FY20 from 11.3% a year ago.
Source: Reserve Bank of India, National Crime Records Bureau