Payments Vision 2025: RBI aims to regulate BigTech, FinTechs, BNPL services

What is the News?

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.