Reserve Bank of India: The Reserve Bank of India (RBI) has asked non-bank payment system operators (PSOs) to track any high-value or suspicious transactions through electronic means of payment. According to a report, in a letter written on April 15, the regulator had told this to the PSO keeping in mind the Lok Sabha elections 2024.

Why did RBI make this decision?

RBI said that this has been done because electronic media can be used to transfer money during elections. RBI said that this money is used to influence voters or to provide funds to the candidates contesting the elections.

The Reserve Bank has said in the letter that as per the guidelines published by ECI from time to time, appropriate authorities or agencies are asked to provide information about high-value or suspicious transactions.

The Election Commission also worried

Earlier the Election Commission had expressed concern about this. It has also been recommended to take appropriate action if necessary. The regulator had sent this letter on April 15, before the start of the Lok Sabha elections in India. This time the Lok Sabha elections will be held in seven phases. Elections will begin on April 19 and end on June 1.

The counting of votes in the election will take place on June 4, 2024. Mandar Kagde, Founder and Principal of Black Dot Public Policy Advisors, said that this step has been taken by the Election Commission after the implementation of the Model Code of Conduct.

However, he further said that it is noteworthy that the word doubtful has been used in the letter. This means that PSOs will not report the transaction because its value is high, they will check whether the transaction is suspicious or not.