Still Strong Bias for Cash Payment; Need to Reassess PSS Act: Report
3 years, 2 months ago

Still Strong Bias for Cash Payment; Need to Reassess PSS Act: Report

News 18  

The pandemic forced an inevitable shift to digital payments but Indians continue to have a strong bias for cash payments, a report said. Due to the emergence of disruptive technologies leading to technology led payment solutions, there is a need to reassess the Payment and Settlement Systems Act, 2007, a key enabler for promoting digital transactions, the report by Vidhi Centre for Legal Policy said. The Act was enacted more than a decade back when the digital payments market in India was at its nascent stage and the law was primarily enacted to regulate payment systems from a systemic perspective and to confer the RBI with necessary powers to regulate these systems, it said. The report recommended that India needs to reassess the PSS Act taking into account the developments in the retail payments sector since its enactment and the future of digital payments in India. It suggested a renewed retail payment services law for India built on the principles of proportionate regulation to tap the full potential of retail digital payments.

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History of this topic

India’s Growth Story is Linked to Progress Made on Digitisation and Its Access
1 year ago

India’s Growth Story is Linked to Progress Made on Digitisation and Its Access

The Quint  

The committee on Deepening Digital Payments constituted by the RBI in 2019 under the chairmanship of Nandan Nilekani had recommended that market forces should drive transaction prices for the inclusion of small startups and incentivising innovation. It underlined that while banks have a role in contributing to the payment system, the government and the RBI should also share the cost …

‘Pay… Paid’: How India plans to put paid to frauds adding delay to first-time digital payments of over Rs 2,000
1 year ago

‘Pay… Paid’: How India plans to put paid to frauds adding delay to first-time digital payments of over Rs 2,000

Firstpost  

In order to curb scams that use online transactions, the government of India is thinking of ways to add some friction bewteen first time transactions between two parties, if the amount is over Rs 2,000 The government of India is planning to add friction in the way first-time online transitions are done between two parties, in order to combat online …

India's digital rupee fails to excite interest, bankers say
2 years ago

India's digital rupee fails to excite interest, bankers say

The Hindu  

A month into India's pilot project for using an official digital rupee for inter-bank and institutional transactions, stakeholders are seeing no benefits, several bankers said. Indeed, the e-rupee, one of several central bank digital currencies being tried around the world, had a drawback, they said: each trade using it had to be settled individually, whereas trades in the established interbank …

Consumers more concerned about digital payment frauds: Survey
3 years, 6 months ago

Consumers more concerned about digital payment frauds: Survey

Live Mint  

Bengaluru: Indian consumers are increasingly concerned about digital payments and look to exercise greater caution, according to a new study conducted by YouGov and digital payment software, ACI Worldwide. Almost 71% of consumers surveyed by YouGov and ACI Worldwide are more concerned about scams and fraud owing to the shift to digital methods of payments due to covid-19. When it …

NPCI turning for profit could help key stakeholders
3 years, 11 months ago

NPCI turning for profit could help key stakeholders

Live Mint  

RBI governor Shaktikanta Das had recently said that the National Payments Corporation of India will be given the option to convert itself into a for-profit entity to withstand competition from entrants in the payments space. Card payment scheme RuPay, payments system Immediate Payment Service, Unified Payments Interface, National Electronic Toll Collection, Aadhaar Enabled Payment System, and Bharat Bill Payment System …

A cap on UPI transactions could hold digital India back
4 years ago

A cap on UPI transactions could hold digital India back

Live Mint  

While India entered a technical economic recession in the first half of 2020-21, some sections of the bureaucracy seem unaware of the situation on the ground and continue to announce policies without due consideration of their potentially adverse impact on businesses and the Indian economy. A volume-based cap would compel TPAPs to either limit the number of transactions on their …

Potholes on the digital payment superhighway
4 years, 2 months ago

Potholes on the digital payment superhighway

The Hindu  

Digital payments have found strong ground, especially in India, increasingly relegating all other modes of payments to the background. With such versatility and ease of settling financial transactions, the growth of digital payments is going to be phenomenal, supported by banks and Fin-Tech, or financial technology, companies. An umbrella system The sterling contribution of this robust payment system, especially retail …

PSU Banks Onboard 1 Crore Account Holders on Digital Payment Modes in a Month
4 years, 2 months ago

PSU Banks Onboard 1 Crore Account Holders on Digital Payment Modes in a Month

News 18  

New Delhi: The finance ministry on Friday said that public sector banks have on-boarded about one crore customers on digital payment modes in just one month of the launch of ‘Digital Apnayen’ campaign. The campaign, aimed at encouraging customers to use digital banking channels, was launched on August 15 under the aegis of the government’s Digital India initiative. PSBs on-board …

Over regulation of payment entities will create greater distress in India’s fintech sector
4 years, 4 months ago

Over regulation of payment entities will create greater distress in India’s fintech sector

News 18  

On March 17, 2020 the RBI came out with Guidelines on Regulation of Payment Aggregators and Payment Gateways. These regulations impose onerous obligations on an already struggling startup ecosystem, raises regulatory uncertainty, and affects competition in the ecosystem and in zero or near zero pricing regime due to Zero MDR, the ill timed and burdensome regulations poses significant sustainability, viability …

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