RBI’s Vision 2018 document Summary
In last week of June 2016, RBI had released the Vision 2018 document for the Payments and Settlement Systems in India. This document aims to encourage the use of electronic payments to move towards a society with a lower use of cash. Payment and settlement systems are used to settle financial transactions (such as clearing cheques).
Key aspects of the Vision 2018 document are as follows:
- wider coverage of electronic payment services
- making the products and processes easier to use
- promoting consumer protection
- ensuring interoperability between service providers
- making services cost effective.
Areas of focus
Key areas of focus under the document are:
- Regulation: The RBI would frame a new policy for the regulation of payment gateway service providers and review the guidelines for mobile banking services.
- Infrastructure: Includes increased frequency of clearing electronic transfers of funds, and interoperability of systems for services such as toll collection and payments for mass transport systems (such as buses).
- Supervision: Includes designing a framework for oversight and improving the monitoring mechanisms for fraud.
- Consumers: Includes strengthening the customer grievance redressal mechanism and improving awareness
This document is expected to result in an increase in customers using mobile banking and accelerated use of Aadhaar for payments, among other areas.