BackBoost to e-payments: RBI says 100% digitally enabled districts soon
A 100% digitally enabled district will let every individual in the area make and receive payments in a safe, secure, quick and convenient mannerRBI also said that framework for Acceptance Development Fund (ADF) will be set up to increase acceptance of debit and credit cards in tier III and VI cities
PremiumIn a what may give thrust to the government’s push for adoption of digital payments, the Reserve Bank of India (RBI) on Friday said that banks will work towards making a district ‘100% digitally enabled’.
A 100% digitally enabled district will let every individual in the area make and receive payments in a safe, secure, quick and convenient manner, and guidelines regarding the same will be issued soon.
“With a view to expanding and deepening the digital payments ecosystem, it has been decided that State/UT Level Bankers Committees shall identify one district in their respective States/UTs on a pilot basis in consultation with banks and stakeholders," the banking regulator said.
“The identified district may be allocated to a bank with significant footprint which will endeavour to make the district 100% digitally enabled," said.
The banking regulator also said that framework for Acceptance Development Fund (ADF) will be set up to increase acceptance of debit and credit cards in tier III and VI cities.
The government and the banking regulator has been taking several steps to increase digital payments and reduce the dependence of cash, a move that is aimed at making payments transactions transparent.
RBI’s Payment System Vision, 2021 report released earlier during the year, had suggested creation of an ADF to ensure acceptance more PoS (point of sales) or card acceptance infrastructure in tier III to tier VI centers. This would to help facilitating innovation and reducing cost of such transactions. Setting up ADF framework was also recommended by Nandan Nilekani headed panel on Deepening of Digital Payments.
“In order to increase digitisation in these areas, as indicated in the Payment System Vision Document 2021 of RBI and also recommended by the Committee on Deepening of Digital Payments (Chairperson: Shri Nandan Nilekani), it has been decided to create an 'Acceptance Development Fund' (ADF) in consultation with the stakeholders. The framework will be operationalised by December 2019," RBI said.
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