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In today’s newsletter: 

• Govt tightens IT Rules on deepfakes
• Diwali, GST cuts fuel UPI spike in Oct
• Zoho Pay takes on Google Pay, PhonePe

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After two years of trial and error in trying to regulate the menace of deepfakes, the IT Ministry has finally zeroed in on what it believes will be the most effective method.

The Ministry of Electronics and Information Technology has proposed amendments to IT Rules 2021, expanding its ambit to include “synthetically generated content” in a bid to tackle the harms associated with deepfakes.

• The draft will now undergo extensive consultations until November 6, after which the ministry will announce the date when these provisions will come into force

The amendments introduce additional compliance requirements for platforms such as AI generators, providers, and intermediaries. These include:

• Labelling synthetically generated information
  
  
• Embedding a permanent metadata tag or identifier that is visible or audible
  
  
• Ensuring the tag covers at least 10 percent of the visual surface, or in the case of audio, the first 10% of its duration

Also read: How India wants to tackle deepfakes menace through new amendments under IT Rules 2021

Yes. In addition to the obligations above, social media platforms like WhatsApp and Instagram will be required to:

• Ask users to declare whether the information is synthetically generated
  
  
• Use “reasonable and appropriate technical measures” to verify these declarations

While addressing a briefing today, Minister Ashwini Vaishnaw said, “... The steps that we have taken today are to ensure that users know what is synthetic, or they are actually seeing something that is authentic. That distinction will be done through labelling, embedding metadata."

The government has also introduced a separate set of amendments to the IT Rules related to content takedown orders sent by government officials to social media platforms.

• Now, only senior officials, such as a Joint Secretary or a Deputy Inspector General (DIG) in law enforcement, can issue such notices

Previously, even junior officials such as sub-inspectors or assistant sub-inspectors were empowered to send these orders.

Go deeper

October has turned into fireworks season for UPI. With GST cuts and festive shopping, the platform has clocked a record 13% month-on-month growth.

UPI’s average daily transaction value in October surged to Rs 94,000 crore, up from Rs 83,000 crore in September. 

• On six separate days, daily transaction value crossed the Rs 1 lakh crore mark, double the number of times it happened last month

Daily transaction volume also touched a new high of 740 million. Last year, too, UPI reported a similar jump from September to October, with festival sales driving growth as both Dussehra and Diwali fell in October.

The surge in UPI is not mirrored across other digital payment methods. For instance, credit card spending is much lower than last month’s record volume and value.

• Credit card transactions are largely driven by e-commerce platform sales, which peaked in September 

• Online credit card spending touched a record Rs 1.18 lakh crore that month, thanks to festive sale events

Interestingly, overall digital payments, including UPI, had dipped to the fiscal year’s lowest levels in September, as consumers likely delayed purchases until GST cuts were announced on September 22, giving mixed signals about consumer demand.

Speaking of digital money moves…Zoho has entered the ring with Zoho Pay. Scroll down for more

In a move that could shake up India’s digital payments market, Zoho is gearing up to launch Zoho Pay.

Zoho Pay will function as a standalone app while also being embedded within Arattai, the company’s homegrown chat platform, setting the stage for a face-off with heavyweights Google Pay and PhonePe.

Sivaramakrishnan Iswaran, CEO of Zoho Payments Tech, told us that Zoho Pay will allow users to send and receive money, make secure payments, and complete transactions without switching apps. 

“Our approach to fintech is incremental. We’re starting with payments and gradually expanding into lending, broking, and insurance. all while staying true to Zoho’s focus on organic, profitable growth,” he said.

The timing is interesting. Google Pay and PhonePe together command nearly 85% of India’s UPI transaction volume, dominating both peer-to-peer and merchant payments.

• Zoho, meanwhile, is entering with a unique edge, the social layer of Arattai, its privacy-focused messaging platform launched in 2021.

Arattai, which means “chatter” in Tamil, was built as Zoho’s answer to global messaging apps amid privacy debates. 

• It quickly gained traction among Zoho’s users and small businesses for its simplicity and secure infrastructure. 

Now, with Zoho Pay integrated into chats, Arattai could evolve into a conversational payments ecosystem.

Find out more 

• OpenAI has entered the browser wars with ChatGPT Atlas, an AI-powered web browser that combines ChatGPT with everyday internet browsing.

• YouTube has begun rolling out an AI likeness detection tool that lets creators identify and remove unauthorised deepfake videos using their face or voice.

What if drones shrank to bug scale?

A YouTuber called Hoarder Sam has hacked together what may be the world’s smallest FPV drone—just 0.86 inches across, with a camera onboard

• Its battery life is short, but its potential for creative flight is large. Watch the video

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