Future of Payments: Here's what experts say about RBI Vision 2021

Experts and stakeholders have welcomed the Reserve Bank of India's 'Vision 2021' for 'Payment and Settlement Systems in India'. The recently released document by the central bank has outlined four clear goal posts - competition, cost, convenience and confidence. The RBI vision document aims to ensure that every Indian gets access to a bouquet of e-payment options that are safe, secure, convenient, quick and affordable. One way to do this is through interoperability. 

Previously, interoperability had always been limited to ATM and Debit Cards, but with the introduction of new payment systems like UPI, BharatQR Code etc. interoperability can now be possible across all channels. RBI is also working towards building on security to imbibe confidence within people towards digital payments. 

Commenting on the vision document, Navin Surya, Chairman Emeritus, Payments Council of India, told Zee Business Online, "It’s extremely welcoming document and really an exceptional one on multiple counts. A clear vision is always first and foremost important step towards achieving the same. Clarity in defining outcomes in terms of scale of digital and overall payments vis a vis GDP is a very good measurement to look forward to and also assess the impact of work done by all stakeholders."

According to Surya, some of the positives of the RBI vision document are: 

- access of PoS acquiring to larger industry eco-systems including non-banks
- Consideration of deeper involvement of non-bank payment players in both interoperable payment as well as settlement system
- Payment SRO initiative which PCI has been leading from forefront already for PPIs as well as Payment Aggregators besides centralized helpline which was managed by PCI during demonetization days
- E-mandates and standing standards which are very critical for growth of credit players
- Inter-regulatory and intra-regulatory coordination, which is extremely critical in dynamic environment such as payments
- Adoption of DLT (Blockchain) in payment system is critical from future proofing Indian payment systems and players
- Risk-based Supervision

However, Surya said that the RBI vision document has missed a few points, including KYC simplicity, Digital KYC and KYC Bureau; Simplification of existing policies to enable NBFCs to issue Credit Cards. 

Gaurav Chopra, Founder & CEO, IndiaLends welcomed the RBI vision that hopes big reduction ini cash-based transactions in the next two years. He said that RBI vision will help lenders in the coming years.  

"As a fin-tech player, being cashless and paperless are two important attributes of our business. RBI through its document spoke about four goal-posts (4 Cs) – Competition, Cost, Convenience and Confidence. With growing competition, industry players will be able to offer services at an optimal cost to their customers. RBI’s vision to bring everyone under financial inclusion will also add as a catalyst for digital lending companies like us to widen our customer base in the coming years," Chopra told Zee Business Online. 

There are several possible results of the RBI vision document. Pointing out some of them, Mandar Agashe, Founder and Vice Chairman, Sarvatra Technologies, told Zee Business Online, "One of the RBI’s core focuses has been on innovation, which is a crucial part of the payment system which will encourage and facilitate innovation in an environment of collaborative competition. It will help us to evolve nation’s digital payments system in a quicker pace. It will directly influence the GDP."

"One of their (RBI's) main objectives has been to ensure usage of debit cards for which they are considering the option of permitting all regulated entities like co-operative banks and NBFCs to setup PoS infrastructure across the country. This will give consumers the choice to choose from a variety of options on how to conduct their transactions. The 24X7 helpline that the RBI plans to set will help in instilling the confidence of the customers in the digital payment system. The Geo-Tagging of payments system touch points will help understand where and what type of transactions are taking place which will lead to curtailing frauds and understanding the behavior of the consumer. Banks can accordingly decide on the type of channels needs to be deployed in specific areas," said Agashe said. 

"Last but not the least the vision of having a single national settlement account will bring in more efficiency in the system and make the process more refined,” he added.