RBI envisions `safe, secure and affordable’ e-payment system
17 May 2019
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The Reserve Bank of India on Thursday placed on its website the `Payment and Settlement Systems in India: Vision 2019 – 2021’, which aims at empowering every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable.
The Payment Systems Vision 2021 with its core theme of ‘Empowering Exceptional (E)payment Experience’, has been formalised based on inputs from various stakeholders and guidance of the Board for Payment and Settlement Systems (BPSS),RBI stated in a release.
It envisages to achieve a ‘highly digital’ and ‘cash-lite’ society through the goal posts of Competition, Cost effectiveness, Convenience and Confidence (4Cs).
With concerted efforts and involvement of all stake holders, the Payment Systems Vision 2021, with its 36 specific action points and 12 specific outcomes, aspires to:
- Enhance customer experience, including robust grievance redressal;
- Empower payment system operators and service providers;
- Enable the payments eco-system and Infrastructure;
- Put in place forward-looking regulations; and
- Undertake risk-focused supervision.
The ‘no-compromise’ approach towards safety and security of payment systems remains a hallmark of the `Vision’, RBI said.
The payment systems landscape will continue to change with further innovation and entry of more players which is expected to ensure optimal cost to the customers and freer access to multiple payment system options.
The Reserve Bank of India will implement the approach outlined in this Vision during the period 2019 – 2021. The previous Vision document covered the period 2016-2018.
Meanwhile, the National Payments Corporation of India (NPCI), the RBI designated e-payments implementation body, has reported a slowdown in the adoption of its RuPay cards despite onboarding more than 1,100 banks in the Universal Payment Interface (UPI) backed system.
According to NPCI data, more than 1,100 banks have been on-boarded into the RuPay Card programme, and have more than 600 million cards have been issued. The RuPay card base in the mass and affluent segments touched 325 million in 2018-19.
In the last four years, RuPay has gained nearly 58 per cent of the issuance market share. However, the transaction share in volume and value terms is at 30 per cent of the market share.
But, with new credit card companies like Paytm and Citi offering their first credit card on the Visa platform, NPCI sees a slowdown in RuPay card issuance by banks. There is also a perceived resistance and banks continue to have little faith in RuPay when it comes to the middle- and upper-income segments, according to NPCI.
Banks still point to lack of infrastructure for their choise of Visa and Mastercard in place of the RuPay card.
While about 436 banks are RuPay-ready, bankers continue to offer Visa or Mastercard to urban middle- and higher-income customers, even as they swear by RuPay cards.
However, they continue to avoid issuing RuPay cars in citing international acceptance and status levels of customers.
NPCI says it is only a matter of perception as RuPay offers good infrastructure and benefits
