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The Reserve Bank of India(RBI) has released the “Payments Vision 2025”.
What is “Payments Vision 2025”?
Released by: Reserve Bank of India(RBI)
Core Theme: E-Payments for Everyone, Everywhere, Everytime (4 Es)
Vision: Provide every user with Safe, Secure, Fast, Convenient, Accessible, and Affordable e-payment options (6 Attributes).
Goalposts: The activities to be taken up by the RBI till 2025 have been captured across five anchor goal posts: 1) Integrity, 2) Inclusion, 3) Innovation, 4) Institutionalization and 5) Internationalization.
Actions to be taken under the Payment Vision 2025:
– Regulations for BigTechs and fintech in payments,
– Guidelines on payments involving “Buy Now Pay Later” (BNPL) services,
– Introducing the central bank digital currency (CBDC),
– Geotagging of digital payment infrastructure and transactions,
– Create a payments system for processing online merchant payments using internet/mobile banking, and
– Linking credit cards and credit components of banking products to the Unified Payments Interface (UPI).
Expected Outcomes of the Vision Document: 1) Restrict the volume of cheque-based payments to less than 0.25% of the total retail payments, 2) Increase the number of digital payment transactions three times, 3) UPI register 50% annualized growth, 4) IMPS and NEFT register 20% growth and 5) Reduction in Cash in Circulation (CIC) as a percentage of GDP.
Source: The post is based on the article “Payments Vision 2025: RBI aims to regulate BigTech, FinTechs, BNPL services” published in Business Standard on 18th June 2022.