The Reserve Bank of India (RBI) has released a new framework for payments and settlements to move the country towards a future less reliant on cash.
The Vision 2018 framework “reiterates the commitment of the Reserve Bank of India to encourage greater use of electronic payments by all sections of society” and aims to produce a solution that will proliferate the use of different methods of payment.
RBI has decided to focus the framework on a set of objectives, which it names “the 5 Cs”:
Coverage – by enabling wider access to a variety of electronic payment services
Convenience – by enhancing user experience through ease of use and of products and processes
Confidence – by promoting integrity of systems, security of operations and customer protection
Convergence – by ensuring interoperability across service providers
Cost – by making services cost effective for users as well as service providers
Positive developments under the previous frameworks between 2012 and 2015 will mean that adoption is quick, according to the bank.
It expects Vision 2018 to result in a continued decrease in paper cash, a growth in retail electronic payments and an increased growth in customers wanting mobile banking services.
“Since 2012-13, all segments of electronic payments, particularly retail electronic payments, have shown healthy growth both in terms of volume and value of usage,” writes RBI. “RTGS and NEFT volumes increased almost threefold between 2013 and 2016 reflecting greater adoption of the system by all segments of users.”
With more banks offering mobile banking services, the volume of mobile banking transactions has increased “nearly seven-fold” in India Cheque payments, on the other hand, have been declining.
The full Vision 2018 report can be found here.