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RBI’s Vision Document 2019-2021 on Payment and Settlement Systems in India to Promote Digital Economy

Soniya Khanna

| Updated: May 21, 2019 | Category: Fintech, Latest News

Payment and Settlement System

A vision document was essential for the growth of digital economy. Therefore RBI released a vision 2019 – 2021 document on Payment and Settlement System in India last week aiming at a ‘cash-lite’ society. This document will work as a mechanism for creating confidence among the general public.

The prime focus of Reserve Bank of India (RBI[1]) is to ensure safe, expedient, secure, and reasonable e-payment system as we can expect more than four times increase in digital transactions by the year 2021. The main aim is to form cash-free society.

What is the Objective of Vision Document?

The vision document will focus on the empowering payment and settlement system in India, and it will increase the digital transactions in the economy besides offering ease to the end consumers. As there is an alignment of payment system providers with the regulators, digital transactions will increase particularly in rural areas and minor cities. It emphasize on improvement, cyber security, customer protection, financial inclusion, as well as competition.

Objective of Vision Document
documents image

The report consists of 36 specific action points with 12 specific outcomes based on the inputs from various stakeholders and guidance of the Board for Regulation and Supervision of Payment and Settlement Systems.

The RBI clarified on the implementation of vision document during the years 2019 – 2021. The RBI is aiming at bringing innovation in technology to save the time of end consumers and enabling access to various safe, secure, convenient and affordable e-payment options.  

“Achieve a ‘highly digital’ and ‘cash-lite’ society through the goal posts of Competition, Cost-effectiveness, Convenience and Confidence (4Cs)”

Previous Scenario of Vision Document

Previously RBI issued vision document in the year 2018 focusing receptive regulation, robust infrastructure, effective supervision and customer centricity, which resulted in the following:

  • Significant fall in paper-based clearing instrument;
  • Constant expansion in electronic payment systems like National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS) as well as debit/credit transactions;
  • Expended customer base;
  • Introduction of Unified Payments Interface (UPI);
  • Accelerated use of Aadhaar;

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Benefits of Releasing Latest Vision Document 2019 -2021 on Payment Systems

  • Setting up of 24×7 helpline will definitely boost customer confidence in terms of digital payment system;
  • Moreover, geo-tagging of payment system touch-points will facilitate in understanding type of transactions which are taking place for companies. This is probably going to diminish frauds;
  • It is expecting that there will be 100% growth in UPI/IMPS and around 40% growth in NEFT;
  • For digital payments, internal ombudsman;
  • This will enable market players to offer services to their clients at the most favorable cost;
  • For retail payment systems, e-mandates implementation / standing instructions;
  • Creating awareness of customers on cyber-security hygiene;
  • Transaction value-based pricing slabs to a fixed minimum transaction-based pricing;
Benefits of Releasing Latest Vision Document

The Focus of Vision Document 2019-2021

  • Enhancing the  experience of customers including robust grievance redressal;
  • Empowering payment System Operators as well as Service Providers;
  • Enabling of payments Eco-system as well as Infrastructure;
  • Put in place Forward-looking Regulations; and
  • Undertake Risk-focused Supervision.

The regulatory body is adopting ‘no-compromise’ approach in terms of safety and security of payment systems.

Our Opinion

In our opinion, the step taken by the RBI to strengthen payment system will go a long way. It will act as a mechanism for promoting digital transactions among the general public.

For more information on vision document of the RBI on Payment and Settlement systems of India: Please read RBI released document and more fintech articles.


Soniya Khanna

Soniya is dedicated professional having flair for reading & writing to keep herself updated with the latest economical developments. In a short span of 4 years as a professional she has worked on projects related to IPR & Corporate laws which have given her diversity in work and a chance to blend her subject knowledge with its real time implementation, thus enhancing her skills.

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