RBI’s Payments Vision 2028

News: The Reserve Bank of India released Payments Vision 2028 outlining new initiatives to strengthen and expand India’s digital payment ecosystem.

About RBI’s Payments Vision 2028

• It is a comprehensive policy roadmap guiding the evolution of India’s payment systems towards a secure, interoperable, and resilient ecosystem, consisting of 15 specific initiatives.
• Theme: “Shaping India’s Payment Frontier”
• Aim: The primary aim is to empower users while providing strong safeguards against fraud and improving efficiency in payment systems.
• Duration: The Vision document charts a roadmap for the next three years, extending up to December 2028.
• Focus Area: It focuses on user empowerment, fraud prevention, cross-border payment efficiency, interoperability, and ease of doing business.
• Features
  • Switch On/Off Facility: It proposes extending the existing card-based facility to all digital payment modes, including domestic and international transactions, to provide users greater control and reduce fraud risks.
  • Payments Switching Service (PaSS): It introduces a centralised service to enable seamless migration of both incoming and outgoing payment instructions during bank switching or mergers.
  • Centralised Payment Control: It allows customers to view all payment flows linked to their accounts and initiate full or partial switching with proper authorisation.
  • Shared Responsibility Framework: It proposes joint liability of issuer and beneficiary banks for unauthorised transactions, replacing the earlier framework where liability was only on the issuer.
  • Strengthened Fraud Safeguards: It encourages banks to adopt robust fraud detection systems and improve coordination for timely intervention.
  • TReDS (Trade Receivables Discounting System) Interoperability and Expansion: It aims to integrate platforms, introduce factoring with recourse, and enable receivables discounting for export MSMEs to improve financing access.
  • Cheque System Review: It plans a comprehensive review of cheque design and security features to enhance uniformity and prevent fraud.
  • Electronic Cheques: It explores introducing electronic cheques to combine the reliability of paper instruments with digital efficiency.
  • Cross-Border Payment Efficiency: It focuses on improving cross-border payment frameworks and simplifying authorisation processes.
  • Ease of Doing Business: It promotes smoother payment processes and supports a more efficient financial ecosystem.
• Significance: It strengthens India’s position as a global leader in digital payments while enhancing security, efficiency, and accessibility of the ecosystem.