The Reserve Bank of India (RBI) has released a vision document to ensure a more convenient, affordable, quick, safer and secure e-payment system. The RBI’s vision document is titled ‘Payment And Settlement Systems In India: Vision 2019 – 2021’
Key Highlights about Vision Document
- Reason: The vision document is released on a pretext that as per RBI’s speculations number of digital transactions in country is expected to increase more than four times to 8,707 crore in December 2021. Also, digital payment systems like UPI and IMPS are most likely to register an average annual growth of more than 100%, and NEFT will grow at 40%, over the period of 2019 – 2021.
- Core Theme of Vision Document: Empowering Exceptional E-payment Experience.
- Objective: It envisages achieving “a highly digital and cash-lite society”. To achieve its objective the goal posts of RBI involves 4Cs, namely convenience, confidence, competition and cost-effectiveness.
- Implementation Period: The bank will implement the approach outlined in this Vision Document during period 2019 – 2021.
- Approach Adopted: by RBI will continue to be that of minimal intervention in pricing of charges to customers for digital payments and RBI’s all efforts will be to facilitate the operation of payment systems which are more efficient and more price-attractive.
- Key Feature of Document:
- It talks about creating customer awareness, setting up a a self-regulatory organisation and 24X7 operational helpline for system operators as well as for service providers, among others.
- The ‘No-Compromise’ approach towards security and safety of payment systems will remain a hallmark of vision.
- No specific target has been considered for reducing cash in circulation.
Way Forward
Throughout the world the payment systems landscape will continue to change with entry of more players and further innovations in sector. But it is expected that this will ensure optimal cost to customers and freer access to multiple payment system options.