The Reserve Bank of India (RBI) on June 17 released its 'Payment Vision 2025' document, which aims to triple the growth in digital payments. The central bank will encourage the use of debit cards and will emphasise on reducing the circulation of cash. The document also talks about the security of domestic payment systems in the face of emerging geopolitical risks, including the need to mandate domestic processing of payment transactions.
The main theme of the vision document is e-payment for all, everywhere, at all times. Its overall objective is to provide secure, fast, convenient, accessible and affordable e-payment option to every user. In a statement, the central bank said that the Payment Vision 2025 has been prepared on the basis of suggestions from various stakeholders and guidance of the Board of Regulation and Supervision of Payment and Settlement Systems of RBI.
BW Businessworld had a conversation with Dewang Neralla, CEO, NTT DATA Payment Services regarding RBI's new initiative.
How can RBI's Payment Vision 2025 make a change?
Payment Vision 2025 has been anchored on five critical goal posts – Integrity, Inclusion, Innovation, Institutionalisation, and Internationalisation. This will truly bring a paradigm shift in the digital payments’ ecosystem. It aims to strengthen the digital payment framework built on customer centricity and focuses on providing safer and transparent payment solutions. The emphasis on innovation and internalisation will ensure that our payments systems are best of breed and lead to interoperability of our payments systems with global networks. The expected outcomes have been well defined paving the way for the maximum penetration and usage of digital payments. This vision really encourages us as NTT DATA Payment Services India to empower millions of merchants, government bodies, colleges as well as hospitals with secure and seamless digital payment solutions.
As its theme is E-payments, how secure it will be in the era of digitisation?
Payment Vision 2025 aims to reduce the overall cash in the economy and seeks three-fold increase in digital payments by providing customers with safe, secure, and convenient options for digital payments. It also lays emphasis on building alternative authentication mechanisms for payment transactions. The alternative authentication factors proposed include leveraging behavioural biometrics, location as well as historical payments, digital tokens, in-app notifications to further make the payments safe and secure for everyone.
What impact will it bring on customers?
Impact on customers, simply said, would be a safer and reliable payment system. Envisioning creation of a digital payments’ protection fund is a great step to ensure customers are less worried about losing their hard earned monies to digital frauds.