The Reserve Bank of India (RBI) under powers from the Payment and Settlement Systems Act, 2007, has endeavoured to ensure that Regulation of Payment Systems is efficient. It seeks to ensure that India has ‘state-of-the-art’ payment and settlement systems that are just safe, secure, efficient, fast and affordable. The Payment system in India consists of Clearing Houses, Speed Clearing, Cheque Truncation System, Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), Electronic Clearing Services (ECS), National Electronic Clearing Service (NECS)
The Payment Systems Vision 2018 of the Reserve Bank envisaged building of ‘best-in-class’ payment and settlement systems for a ‘less-cash’ India through the four strategic pillars of responsive regulation, robust infrastructure, effective supervision and customer centricity. The Vision 2018 has facilitated:
These endeavours have achieved:
The Payment and Settlement Systems in India: Vision – 2019-2021 was released on May 15, 2019. The core theme was– EMPOWERING EXCEPTIONAL (E)PAYMENT EXPERIENCE. The Vision aims towards:
The Vision envisages four goal-posts (4 Cs) – Competition, Cost, Convenience and Confidence. For enhancement of Competition in the payment systems landscape, specific thrust areas like creating regulatory sandbox, authorising new players, etc., have been incorporated; this along with the presence of multiple players in the market is expected to achieve optimal Cost for the customers; freer access with availability of multiple payment system options anytime-anywhere should cater to the requirement of Convenience; the ‘no-compromise’ approach towards safety of payment systems should address security vulnerabilities to retain customer Confidence.
It has four goal-posts of Vision 2021 with 36 specific action points.
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