RBI releases framework on payments systems

The Reserve Bank of India (RBI) has released its much awaited 'Vision-2018' document.

The 'Payment and Settlement Systems in India: Vision-2018' aims at building best of class payment and settlement systems for a 'less-cash' India and ensuring access of mobile banking services to even basic phone users.

The document's focus is on improving the infrastructure and regulations in the country to reduce cash transactions and increase use of technology.

The RBI has said in its statement that its vision document focuses on responsive regulation, robust infrastructure, effective supervision and customer centricity.

It said the proposed new policies to be framed under the Vision with focus on electronic payments will influence trends in payment systems in the country.

The RBI statement said that service providers will be encouraged to use technology to provide innovative easy to use mobile based payment solutions in an interoperable environment without compromising on security. RBI expects the Vision to result in a continued decrease in the share of paper-based clearing instruments.