The Reserve Bank of India (RBI) released its statement on ‘Payment and Settlement Systems in India: Vision 2019–2021’, which notifies the steps that RBI will take to promote innovation, cyber-security, financial inclusion, customer protection, and competition through which the vision looks forward to achieve a ‘highly digital’ and ‘cash-lite’ society.
- The Reserve Bank of India will implement the approach outlined in this Vision during the period 2019 – 2021.The report consists of 36 specific action points with 12 specific outcomes, based on different inputs from stakeholders and guidance of the Board for Regulation and Supervision of Payment and Settlement Systems.
- The RBI has notified the requirement for a self-regulatory organisation for the digital payment space, that would serve as a 2-way communication channel between the players and the regulator.
The number of digital transactions would rise over 4 times, from 20.69 billion in December 2018 to 87.07 billion in December 2021.
- The digital payment transaction income w.r.t (with respect to) GDP (Gross Domestic Product, at current market prices) is expected to hike up to 10.37% in 2019, 12.29% in 2020, and 14.80% in 2021.
To get a methodical approach towards regulation, the RBI will engage with the other regulators, namely, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority, Telecom Regulatory Authority of India.
- The RBI will implement e-mandates/standing instructions for retail payment systems which are subject to customer protection and adequate safeguards.