Home »Current Affairs » Articles »RBI appointed a committee on digital payments in India under the chairmanship of Nandan Nilekani The Reserve Bank of India had constituted a High-Level Committee on Deepening of Digital Payments under the Chairmanship of Shri Nandan Nilekani

RBI appointed a committee on digital payments in India under the chairmanship of Nandan Nilekani The Reserve Bank of India had constituted a High-Level Committee on Deepening of Digital Payments under the Chairmanship of Shri Nandan Nilekani

Posted on : 10 Dec 2019

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  • Plan for 10X volume growth, 3x user growth in three years
  • Provide a consistent view on Digital Payments. The RBI must rationalize the definition of digital payments, and become the source of accurate and consistent and granular data for better tracking.
  • Provide a consistent view on Digital Payments. The RBI must rationalize the definition of digital payments, and become the source of accurate and consistent and granular data for better tracking.
  • Encourage non-banks to participate in payment systems. Payment schemes must be allowed to induct non-banks as associate members. Settlement will continue to be through the sponsor banks.
  • Set up an Acceptance Development Fund. The RBI may consider setting up an acceptance development fund to improve infrastructure and develop new merchants in poorly served areas.
  • Promote acceptance of digital payments. Each merchant must support at least one digital mode, namely BharatQR, BHIM UPI QR, or cards. QR codes allow merchants to accept payments with very low fixed costs, and this can be the basis for a large growth in acceptance.
  • Ensure no user charges for digital transactions. Customers must be allowed to initiate and accept a reasonable number of digital transactions with no charges.
  • Ensure no user charges for digital transactions. Customers must be allowed to initiate and accept a reasonable number of digital transactions with no charges.
  • Build capacity for digital transformation in the banking industry. The IDRBT must take the lead on building training programs and capacity.
  • Monitor transaction failures. The regulator must monitor failed transactions; in particular, the technical decline rates and business decline rates. The regulator must also ensure that the operators present a plan to bring down these failure rates by 25% every year.
  • Educate users. The RBI must publish aggregated fraud data periodically, and educate users on the emerging risks and ways to protect them.
  • Educate users. The RBI must publish aggregated fraud data periodically, and educate users on the emerging risks and ways to protect themselves.
  • Dispute resolution systems may be enhanced to keep track of fraud reports and coordinate with the fraud registry, and regulatory reporting.
  • Spread best practices. For example, payment systems operators may make the necessary changes to allow for auto-reversal of failed transactions.
  • The RBI must conduct periodic user surveys to gauge attitudes to digital payments. This data must be used to enable location-specific decision making.

Article Related Questions

  1. RBI appointed a committee on digital payments in India. It was headed by?

  2. 1.Tapan Ray

    2.Nandan Nilekani

    3.SC Garg

    4.NK Singh

    Right Ans : Nandan Nilekani


  3. The 1857 Uprising was the culmination of the recurrent big and small local rebellions that occured in the preceding hundred years of British Rule. Elucidate (Answer in 150 words) - 2019 Mains


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