Spurring digital payments in India

We need to understand that payments is a commercial activity and hence cannot be treated on par with banking. What is needed is an integrated payments institution to encourage competition

The Reserve Bank of India (RBI) recently warned of a “concentration risk” in the retail payments sector as a vast majority of the transactions were being done by a handful of digital banking giants. The central bank added it has planned to further boost competition in the booming sector to promote pan-India payment platforms and give innovation in the industry a leg up. The RBI aired its thoughts in its “Statement on Developmental and Regulatory Policies”, released in early June.

However, things may be back to square one as Indians — long used to the allure of cash — are going