PAYMENT AND SETTLEMENT SYSTEMS IN INDIA: VISION 2019 - 2021

About: 

• Name of the vision document: Payment and Settlement Systems in India: Vision 2019 – 2021.
  
  
• Implementation Period: The bank will implement the approach outlined in this Vision during the period 2019 - 2021. 
  
  
• Core theme of document: Empowering Exceptional E-payment Experience. 
  
  
• Key vision of document: It envisages to achieve "a highly digital and cash-lite society" through the goal posts of competition, cost-effectiveness, convenience and confidence (4Cs). 
  
  
• Background: 
  • The move comes as the RBI expects the number of digital transactions to increase more than four times to 8,707 crore in December 2021. 
    
    
  • Payment systems like UPI and IMPS are likely to register average annualised growth of over 100%, and NEFT at 40%, over the vision period. 
    
    
  
  
  
• Strategy to be adopted:
  • The document talks about creating customer awareness, setting up a 24X7 helpline and self-regulatory organisation for system operators and service providers, among others. 
    
    
  • The 'no-compromise' approach towards safety and security of payment systems remains a hallmark of the vision. 
    
    
  • The approach of the RBI will continue to be of minimal intervention in the pricing of charges to customers for digital payments. 
    
    
  • Interestingly, no specific target has been considered for reducing cash in circulation.