(GIST OF YOJANA) Payment and Settlement Systems- RBI’s Vision Document [JULY-2019]

(GIST OF YOJANA) Payment and Settlement Systems- RBI’s Vision Document


Payment and Settlement Systems- RBI’s Vision Document


  •  Payment and settlement systems arc the backbone of any economy. The Inst decade has witnessed substantial developments in this area of activity across the country.
  •  The Reserve Bank of India (RBI ). under powers from the Payment and Settlement Systems Act. 2007, has endeavoured to ensure that India has state-of-the-art ' payment and settlement systems that are not just safe and secure, but are also efficient, fast and affordable, efforts in this direction have yielded handsome results. The RBI Vision document outlines the road map for the three-year period spanning from 20 19 to 2021.

Positive Developments during 2015-2018

  •  Some of the positive outcomes of the developments during the period 2015-2018 include ushering introduction of new and innovative systems, distinctive shift from paper to electronic payment modes, sizable increase in transaction turnover, customer centric initiatives, international recognition, etc.
  •  Growth in electronic payments has been substantial with retail payments reflecting large growth in volume terms, while the Systemically Important Financial Market Infrastructures (SlFMIs), such as the Real Time Gross Settlement (RTGS) system and Financial Markets C learing through Clearing Corporation of India Ltd. (CCIL), dominate in value terms.
  •  The Pay ment Systems Vision 2021 recognises the need for continued emphasis on innovation, cyber security, financial inclusion, customer protection and competition.
  •  Quantitatively measured, digital payment transaction turnover vis-a-vis GDP (at market prices-current price) increased from 7.14 in 2016 to 7.85 in 2017 and further to 8.42 in 2018., The turnover in payment transactions (after including CCIL figures and paper) vis-a-vis GDP (at market prices-current price) increased from 14.41 in FY 2015-16 to 14.73 in FY 2016-17 and further to 15 in 2017-18.

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Highlights of Payment Systems Vision – 2021

  •  Empower every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable. While the pursuit towards a ‘less cash’ society continues, accompanied by the ambition to have a less-card India as well, the endeavour is to also ensure increased efficiency, uninterrupted availability of of payment systems. The specific outcomes include-
  •  It is expected that the volume of cheque- based payments would be less than 2.0 per cent of the retail electronic transactions by 2021.
  •  Payment systems like UPI / IMPS are likely to register average annualised growth of over 1 00 per cent and NEFT at 40 per cent over the vision period. The number of digital transactions is expected to increase more than four times from 2069 crore in December 2018 to 8707 crore in December 2021.
  •  Measurably, the digital payment transaction turnover vis-a-vis GDP (at market prices-current price) is expected to further increase to 10.37 in 2019, 12.29 in 2020 and 14.80 in 2021. Payment transaction turnover, including CCIL transactions and paper, is expected to be 22.30 times the GDP (at market prices- payments space and establishment of new PSOs during the Vision period is envisaged.

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