Introduction
A vision document by the Reserve Bank of India with the theme: ‘E-Payments for Everyone, Everywhere, Everytime’ (4Es)
Vision
Aims to provide every user with safe, secure, fast, convenient, accessible, and affordable e-payment options.( 6 Attributes)
Objectives
- to improve the payment systems so that they can provide consumers with convenient, cost-effective payment choices that are available whenever and wherever they choose.
- To make it possible to geotag digital payment infrastructure and transactions, as well as to review the rules for prepaid payment instruments (PPIs), including closed system PPIs.
- Regulating all main payment ecosystem intermediaries and linking UPI to credit cards and financial products’ credit components.
- To bring in enhancements to Cheque Truncation System (CTS), including One Nation One Grid clearing and settlement perspective, and creating a payment system for processing online merchant payments using internet and mobile banking.
- Examining of BNPL (Book Now Pay Later) methods
- Regulation of BigTechs and FinTechs in the payments space.
The vision document was prepared after considering the inputs from various stakeholders and guidance from the Board for Regulation and Supervision of Payment and Settlement Systems.
The five anchor goalposts of Integrity, Inclusion, Innovation, Institutionalisation, and Internationalisation.
Various initiatives proposed under the above five goalposts shall have the following
ten expected outcomes during the Vision period:
i. Volume of cheque-based payments to be less than 0.25% of the total retail payments;
ii. More than 3x increase in number of digital payment transactions;
iii. UPI to register average annualised growth of 50% and IMPS / NEFT at 20%;
iv. Increase of payment transaction turnover vis-à-vis GDP to 8;
v. Increase in debit card transactions at PoS by 20%;
vi. Debit card usage to surpass credit cards in terms of value;
vii. Increase in PPI transactions by 150%;
viii. Card acceptance infrastructure to increase to 250 lakh;
ix. Increase of registered customer base for mobile based transactions by 50% CAGR;
and
x. Reduction in Cash in Circulation (CIC) as a percentage of GDP.
They cover 47 specific initiatives and 10 expected outcomes.
The first payment vision document was in 2001.
Payments Vision 2025 builds on the initiatives of Payments Vision 2019-21.
Some facts about Payments Vision 2019-21
- THEME – Empowering Exceptional (E)Payment Experience
- Vision2019 -21 aims towards
- enhancing the experience of Customers
- empowering payment System Operators and Service Providers
- enabling the Eco-system and Infrastructure
- putting in place a Forward-looking Regulation
- supported by a Risk-focussed Supervision
- Vision 2019-21 envisages four goal-posts (4 Cs) – Competition, Cost, Convenience and Confidence.
Board for Regulation and Supervision of Payment and Settlement Systems is made under the Payment and settlements system act 2007. It is headed by the RBI governor.
Refer to the article of Payment and settlements system act 2007
Certain Acronyms which were used in the document:
2FA :Two Factor Authentication
APBS : Aadhaar Payment Bridge System
AePS :Aadhaar-enabled Payment System
AFA: Additional Factor of Authentication
ATM: Automated Teller Machine
BIS: Bank for International Settlements
BNPL: Buy Now Pay Later
BPSS: Board for Regulation and Supervision of Payment and Settlement Systems
CAGR: Compound Annual Growth Rate
CCIL :Clearing Corporation of India Limited
CCP: Central Counter Party
CIC: Cash in Circulation
CLS: Continuous Linked Settlement
COFT :Card-on-File Tokenisation
CPFIR :Central Payments Fraud Information Registry
CPMI :Committee on Payments and Market Infrastructures
CPS :Centralised Payment System
DPI :Digital Payment Index
e-BAAT: e-banking awareness & training
FMI :Financial Market Infrastructure
FSB :Financial Stability Board
GDP: Gross Domestic Product
IFSC :Indian Financial System Code
IMPS :Immediate Payment Service
INFINET: Indian Financial Network
INR :Indian National Rupee
IoT :Internet of Things
ISO :International Organisation for Standardisation
KYC: Know Your Customer
LEI :Legal Entity Identifier
NACH :National Automated Clearing House
NCMC: National Common Mobility Card
NEFT: National Electronic Funds Transfer
NFS :National Financial Switch
NPCI :National Payments Corporation of India
Write the answers in the comment section of the expected question in exams:
- What are the 4Es of vision payment 2025?
- How many expected outcomes of vision payment 2025?
- How many specific initiatives of vision payment 2025?
- How many anchor goal posts of vision payment 2025?
- What are the 5 Is of vision payment 2025?
- When was the first vision payment document published?
- What is the aim of vision payment 2025?
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Current Affairs
| Current Affairs April 2022 | |
