Source: News on Air
Subject: Economy
Context: The Reserve Bank of India (RBI) has released its ‘Payments Vision 2028’ document, titled Shaping India’s Payment Frontier.
- This strategic roadmap succeeds the 4Es (Everyone, Everywhere, Every time) vision of 2025, shifting the focus toward deepening consumer trust.
About RBI Payments Vision 2028:
What it is?
- It is a comprehensive policy framework and roadmap designed to guide the evolution of India’s payment systems. It marks a transition from just expanding reach to scaling global dominance and ensuring the digital ecosystem is secure, interoperable, and resilient against emerging cyber threats.
Organization Involved: Reserve Bank of India (RBI).
Aim: The primary goal is to empower users while providing robust safeguards against fraud.
Key Features:
- Interoperability in TReDS: Proposes a unified framework for Trade Receivables Discounting Systems to streamline MSME financing and extend services to export-oriented MSMEs.
- Payments Switching Service (PaSS): A centralized service allowing customers to migrate payment instructions seamlessly when switching bank accounts (Account Portability).
- Enhanced User Controls: Introduction of a Switch On/Off facility for all digital payment modes (UPI, IMPS, etc.), similar to current credit/debit card controls, to mitigate fraud.
- Shared Liability Framework: A new responsibility model where both issuing and beneficiary banks share liability for unauthorized transactions to protect consumers.
- Cyber Resilience (KRI): Introduction of Cyber Key Risk Indicators for non-bank payment operators to provide early warning signals for potential security breaches.
- Cross-Border Overhaul: A Single-Window authorization for international payments and periodic benchmarking of transaction costs and speeds against global standards.
- Cheque Modernization: Reviewing physical cheque security while introducing Electronic Cheques to merge traditional reliability with digital speed.
- AI and Data Integration: Creation of an AI-enabled payments data repository for better transparency and research-led policy making.
- Small Payment System Providers (SPSPs): Recognition of smaller players under a Perpetual Regulatory Sandbox to encourage niche innovations.
Significance:
- By benchmarking against 15 global indicators, India seeks to maintain its status as a world leader in real-time digital payments.
- Interoperability in TReDS and factoring with recourse will unlock much-needed liquidity for small businesses, boosting the Make in India initiative.
