RBI Governor Shaktikanta Das announced on Monday the imminent launch of an interoperable payment system for internet banking, slated for later this year. This system aims to expedite fund settlement for merchants, enhancing user confidence in digital payments. The Reserve Bank of India (RBI) has greenlit the implementation of this system by NPCI BharatBill Pay (NBBL), anticipating a significant stride in facilitating seamless transactions.
In his address during the Digital Payments Awareness Week, Das emphasised the pivotal role internet banking plays in online merchant transactions, spanning various sectors like income tax, insurance premium and e-commerce. Currently, transactions through Payment Aggregators (PAs) lack interoperability, necessitating separate integrations between banks and different PAs, leading to delays and settlement risks for merchants. The forthcoming interoperable system seeks to rectify these issues, ensuring swifter transaction settlements.
Das underscored the regulator's commitment to advancing India's digital payments landscape, urging stakeholders to collectively champion the mission of ubiquitous digital payments. He highlighted the remarkable growth trajectory of retail digital payments in India, surging from 162 crore transactions in FY2012-13 to over 14,726 crore transactions by February 2024, representing a 90-fold increase over a span of 12 years.
India's prominence in global digital transactions, accounting for nearly 46 per cent as of 2022, and the exponential rise in the Reserve Bank's Digital Payment Index over the past five years attest to this growth. UPI emerged as a global exemplar of fast payment systems, commanding close to 80 per cent share in digital payments in 2023. Daily UPI transactions soared to approximately 42 crore, with volumes skyrocketing from 43 crore in 2017 to 11,761 crore in 2023.
Since the inception of the mission in March 2023, 6.65 crore new UPI users were added by January 2024. The Reserve Bank's Payments Infrastructure Development Fund (PIDF) played a pivotal role, facilitating the deployment of over 1.2 crore digital payment touchpoints, further fueling this growth trajectory.
Das emphasised that trust in digital payments hinges on transparency, ease of use, and robust security measures. The RBI's concerted efforts aim to bolster awareness around the safety and security of digital payments, empowering individuals to navigate this landscape with confidence and ease.
