E-Payment

What is E-Payment:

E-payments are an electronic or digital way of transferring funds. The definition of electronic money as per the reports of the Reserve Bank of India in their 2002 report, broadly defines this term as “An electronic store of monetary value on a technical device, used for making payments to undertakings other than the issuer without necessarily involving bank accounts in the transaction, but acting as a prepaid bearer instrument.” The electronic money is divided into two parts, which are prepaid store value cards and digital wallets, which includes Unified Payment Interfaces (UPI) as well.

Official Definition:

E-payment in courts refers to the electronic filing and payment of fees associated with legal proceedings, including court fees, fines, and penalties directly payable to the Consolidated Fund. As of August 14, 2018, the online platform https://pay.ecourts.govin facilitates the electronic payment of court fees, fines, penalties, and judicial deposits. The introduction of electronic collection methods for court fees and other civil payments necessitates amendments to existing Court Fees Acts enacted by various State Governments. Additionally, it requires the establishment of bank accounts in Nationalized Banks or other suitable financial institutions capable of electronically receiving, holding, and disbursing such payments.

E-Payment in Indian Courts

Initiatives for Electronic Payment of Court Fees: The Department of Justice (DoJ) has engaged with Chief Secretaries and Registrar General of High Courts to accelerate the enactment or modification of existing laws enabling electronic payment (e-Payment) of court fees. The e-Committee of the Supreme Court has additionally recommended that High Courts issue administrative instructions under existing Court Fees Acts to allow for a one-time lump sum deposit as court fees. This deposit can be adjusted during proceedings and any remaining balance refunded, similar to how court fees are refunded for withdrawn or compromised proceedings. These measures aim to streamline legal processes and enhance efficiency in fee management within the judiciary.

Implementation of E-Payment Across High Courts in India

A total of 23 High Courts, including Allahabad, Bombay, Calcutta, Chhattisgarh, Delhi, Guwahati-Assam, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Madras, Manipur, Orissa, Patna, Punjab & Haryana, Rajasthan, Guwahati-Mizoram, Gujarat, Jharkhand, Karnataka, Kerala, Meghalaya, Telangana, Tripura, Uttarakhand, and Sikkim, have implemented e-Payment systems within their jurisdictions. Additionally, the Court Fee Act has been amended in 22 High Courts as of February 29, 2024. These advancements aim to modernize fee payment processes, enhance judicial efficiency, and facilitate streamlined transactions across the judiciary.

Facilitating E-Payments Through Diverse Platforms

Electronic payments (ePayments) can be facilitated through various electronic payment processes such as SBI ePay, GRAS, e-GRAS, JeGRAS, HimKosh, and others. In addition to credit/debit cards and bank transfers, applications including BHIM App, RuPay, and private wallets like Paytm, Google Pay, and others can also be utilized for transactions. These diverse platforms enhance accessibility and convenience in fee payments across different sectors, promoting a more efficient and inclusive financial ecosystem.

E-Courts Fee Payment System

The E-Courts fee payment service facilitates online payments for court fees, fines, penalties, and judicial deposits. The E-Payment portal integrates with state-specific vendors such as SBI ePay, GRAS, e-GRAS, JeGRAS, Himkosh, etc. Interested users can access the service through the website URL: https://pay.ecourts.gov.in, designed specifically for depositing various amounts in court via online mode. The portal offers four primary options: Court Fee, Judicial Deposit, Fine, and Penalty.

For online payment of court fees, the ePay portal is linked with the Online Receipts Portal of respective states (e.g., GRAS, eGRAS). Users must possess a net banking account with banks listed on the state government portals to utilize this facility. Alternatively, payment across bank counters is available for those without net banking accounts, albeit with limited banks.

This service operates 24x7, enabling citizens to make payments at any time. A single challan form is filled online, minimizing required fields. Challans generated via the ePay portal are submitted by litigants/advocates in court along with their case filings. To prevent reuse, the challan is verified and defaced using CIS S/W within the court premises.

Two options are provided for court fee payments:

1. Payment of Court Fee in a New Case: Use this for cases not yet registered.

2. Payment of Court Fee in an Existing Case: Search for existing cases using CNR number, Case Number, or Filing Number.

Users can also view their transaction history through the "View Previous Transaction" option, enhancing transparency and accountability in financial transactions within the judicial system.

Research that engages with

1. The March 2024 newsletter published by the e-Committee of the Gauhati High Court provides an update on the implementation status of e-payments in various High Courts across India as of March 31, 2024. The document examines two key aspects: whether the respective Court Fee Act has been amended to facilitate e-payments and whether the e-payment facility has actually been implemented. According to the data, 23 High Courts have amended their Court Fee Act to enable e-payments, and 22 High Courts have successfully implemented the e-payment facility.

Source: https://ghconline.gov.in/Document/e-Committee_Newsletter_March_2024.pdf

2. Refund Policy: According to the ePay chargeback policy available at eCourts https://pay.ecourts.gov.in/epay/Epay_Chargeback.html, ePay provides a unified interface for litigants and lawyers to pay court fees, fines, penalties, judicial deposits, and other related payments for High Courts, District Courts, and Taluka Courts using the Case Information System (CIS) of the eCommittee, Supreme Court of India. It facilitates payment, accounting, and reconciliation for the courts, serving as a user interface and payment gateway for users and an accounting tool for court account sections. Additionally, it offers Management Information System (MIS) support to the courts. Refund requests are managed by designated officials or Drawing and Disbursing Officers (DDOs) in the relevant department.

This refund policy applies to cases with a valid reason for refund, based on specified scenarios and subject to proof of debit, availability of Government Account Receipt (GAR-6), and confirmation of the amount credited to the Pay and Accounts Office (PAO)’s account.

3. Standard Process for Claiming Refund:

According to https://pay.ecourts.gov.in/epay/Epay_Chargeback.html The user must submit a refund request to the concerned Drawing and Disbursing Officer (DDO) in the court within 45 days from the date of the transaction. The contact information for the DDO will be available on the ePay platform. Upon receiving the request, the DDO will acknowledge receipt via email to both the user and ePay. The DDO will then conduct due diligence to verify the necessary evidence and assess the validity of the claim. If the refund claim is accepted, the DDO will initiate the refund process in accordance with Government Financial Rules (GFR) by generating a financial sanction. The respective Pay and Accounts Office (PAO) will process the payment to the user based on this sanction. Refunds are at the sole discretion of the service department (DDO in Court), and ePay is not responsible for any refund claims.

Challenges

In India, cultural preferences for cash, particularly in rural areas, combined with low digital literacy and limited internet access, significantly hinder the adoption of e-payments. The implementation of e-payments in the Indian judiciary faces challenges including inconsistent adoption across states; as of March 2024, 23 High Courts amended their Court Fee Acts, but only 22 implemented e-payment systems. Legislative delays in amending laws hinder widespread adoption, requiring coordinated efforts between the e-Committee, High Courts, and PAOs. User awareness and training are crucial amid complexities in the refund process and security concerns over fraudulent transactions. Varied technological infrastructures further complicate uniform implementation, highlighting the need for comprehensive solutions to ensure effective e-payment integration nationwide. Additionally, trust issues persist, especially among the less literate population, who perceive digital transactions as less secure than traditional cash methods.

Suggestions

The current intermediary directions and regulations governing digital or electronic money contain conflicting provisions, potentially leading to future disputes unless updated. Undefined terms, such as ‘instant payments,’ add to the ambiguity. The new guidelines place additional responsibilities on payment aggregators, requiring thorough background checks of merchants to prevent fraud, and imposing significant penalties for non-compliance.

Banks and NBFCs must ensure the confidentiality of customers' personal data during digital transactions, with legal penalties for violations. It is suggested that the Controller and Auditor General of India should be authorized to audit banking companies to ensure fairness in handling personal data. Additionally, biometric verification at ATMs should be mandated for transactions.

The RBI’s grievance handling system should operate virtually, allowing complainants to submit and plead cases online for greater satisfaction. The scope of customer satisfaction with banks, UPI, aggregators, merchants, and ombudsman decisions requires further study. Payment failures and money blockages should fall under the Consumer Protection Act 1986 (amended in 2019), with provisions for consumer courts to prioritize and resolve such complaints online in a timely manner.

Way Forward

The digital payment system in India is becoming increasingly popular and convenient for clients, merchants, and financial institutions. Despite challenges such as low internet penetration and digital literacy, India is rapidly advancing toward a cashless economy. The Reserve Bank of India (RBI) has implemented stringent guidelines to enhance security and prevent fraud, making digital transactions more secure. UPI remains the dominant platform, driving significant growth in digital payments. With continued technological advancements and regulatory support, the digital payment ecosystem will see exponential growth, contributing to financial inclusion and playing a transformative role in India's economy. The use of the digital mode of money or UPI-based transactions is skyrocketing in India, making it necessary for the laws to be implemented as per the developments taking place. The newly issued guidelines make sure that the laws are up to date and have all the plausible solutions for any disputes that may arise.