‘RBI’s vision document on payment systems to spur digital economy’
| Date :20-May-2019 |
Business Bureau:
The RBI’s ‘Payment Systems Vision 2021’ document would act as a catalyst for promoting digital economy and instill confidence among the general public, fintech companies say. Aiming at a ‘cash-lite’ society, the Reserve Bank of India (RBI) last week released the vision document for ensuring a safe, secure, convenient, quick and affordable e-payment system as it expects the number of digital transactions to increase more than four times to 8,707 crore in December 2021. The RBI has said it will implement the approach outlined in the document during the period 2019 - 2021. COO of Payworld Praveen Dhabhai said the vision document has a focus on empowering payment system providers and at the same time providing ease to consumers.
“We are confident with our vision as a payment system provider aligned with the regulators, we will be able to contribute in increasing the digital transactions penetrations especially in the assisted segment in smaller cities and rural Indian," he said. Navin Surya, Chairman Emeritus, Payments Council of India said: “Clarity in defining outcomes in terms of scale of digital and overall payments vis a vis GDP is a very good measurement to look forward to and also assess the impact of work done by all stakeholders.”
However, KYC simplicity, digital KYC and KYC bureau, as well as simplification of existing policies to enable NBFCs to issue credit cards is missing from the document, said Surya, who is also the chairman of Fintech Convergence Council. Mandar Agashe, founder and vice chairman, Sarvatra Technologies, was of the opinion that the 24X7 helpline that the RBI plans to set will help in instilling confidence in customers regarding the digital payments system. Other than this, geo-tagging of payment system touchpoints will help companies understand where and what type of transactions are taking place, which will also lead to curtailing frauds, he added.
The document said payment systems like UPI/IMPS are likely to register average annualised growth of over 100 per cent and NEFT at 40 per cent over the vision period (up to December 2021). The ‘Payment and Settlement Systems in India: Vision 2019 - 2021’, with its core theme of ‘Empowering Exceptional (E)payment Experience’, envisages to achieve “a highly digital and cash-lite society” through goal posts of competition, cost effectiveness, and confidence.