The Reserve Bank of India (RBI) is gearing up to launch an interoperable payment system for internet banking transactions later this year. The announcement was made by RBI Governor Shaktikanta Das during an event in Mumbai commemorating Digital Payments Awareness Week.
Das revealed that the necessary approvals have been granted to NPCI Bharat BillPay Limited for the rollout of the new system. This initiative, in line with RBI's Payments Vision 2025, aims to streamline the settlement process for merchants, ensuring quicker access to funds.
Currently, internet banking transactions, such as income tax payments, insurance premiums, and e-commerce transactions, processed through Payment Aggregators lack interoperability, resulting in delays and settlement risks for merchants. The introduction of this new system is expected to address these challenges and enhance user confidence in digital payments.
India's dominance in digital transactions was also pointed by Das, who highlighted that the country accounts for nearly 46 percent of global digital transactions. Retail digital payments have witnessed a staggering increase, soaring from 162 crore transactions in FY 2012-13 to over 14,726 crore transactions in the fiscal year 2023-24 (until February 2024).
Das elaborated on the success of India's flagship payment system, Unified Payments Interface (UPI), which has garnered close to 80 percent share in digital payments. UPI's user-friendly interface and QR code-based payment functionalities have contributed to its widespread adoption, with transactions surging from 43 crore in 2017 to eleven thousand and 761 crore in 2023.
Since the initiation of the "Har Payment Digital" mission in March 2023 until January 31, 2024, over 6.65 crore new UPI users have been added to the system, facilitating the growth trajectory. The deployment of over 1.2 crore digital payment touchpoints has strengthened the digital payment infrastructure across the country.
Das emphasized that trust in digital payments rests on transparency, ease of use, and security.
Awareness programs are being conducted to empower individuals and ensure they navigate the digital payments landscape with confidence and ease.
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