The Payment and Settlement Systems in India for financial transactions are regulated and supervised by Reserve Bank of India through The Payment and Settlement Systems Act, 2007, enacted by Parliament. National Payment Corporation of India (NPCI) is owned by a consortium of major Banks, and has been promoted by Reserve Bank of India. NPCI was founded in 2008, under section 8 of the Companies Act, 2013. The Product & Services offered by NPCI are National Financial Switch (NFS), NACH, IMPS, RuPay, Contactless RuPay, CTS, AePS, UPI, BHIM, BBPS etc.
Earlier in the year 1994, a committee on Technology Up-gradation in the Payment Systems was constituted. The committee recommended a variety of payment applications that can be implemented with appropriate technology up-gradation and development of a reliable communication network. The committee also suggested setting up of an Information Technology Institute with the objective of Research and Development as well as Consultancy in applying technology to the Banking and Financial Sector of the country. Based on the recommendations of the committee, the Institute for Development and Research in Banking Technology (IDBRT) was established in March 1996 as an Autonomous Centre for Development and Research in Banking Technology.
The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a sub-committee of the RBI is the highest policy making body on payment systems in the country.The RBI Vision Statement 2021 says Empower every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable. Its core theme is Empowering Exceptional E-payment Experience (4Es). The Vision 2021 has been formalised by seeking inputs from various stakeholders and guidance of BPSS. It envisages to achieve a highly digital and cash-lite society through goal posts of Competition, Cost effectiveness, Convenience and Confidence (4Cs). The previous Vision document covered the period 2016-2018.
RBI Vision 2021 concentrates on a two-pronged approach of:-
(a) Exceptional customer experience
(b) Enabling an ecosystem which will result in this customer experience.
With this objective in mind, the Vision 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-focused Supervision.
Vision Source: RBI Master Circular
Keep watching this space for more updates on Payment and Settlement Systems in India!
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