BackRBI Guv says 1,050 cr retail digital payment transactions worth ₹51 lakh cr processed in Jan 2023
RBI guv said, about 1,050 crore retail digital payment transactions worth ₹51 lakh crore processed in January 2023 stand as testimony to the size and efficiency of India’s digital payments.He also revealed that Unified Payments Interface (UPI) has revolutionised the payments ecosystem with about 803 crore transactions worth ₹13 lakh crore processed in January 2023 alone.
PremiumRBI governor Shaktikanta Das on Saturday said that it is the combined effort of all the PSOs, the government, and the central bank that has made India a shining star in the global payments space. In a conference, Das revealed that about 1,050 crore retail digital payment transactions worth ₹51 lakh crore were processed in January 2023. This stands as testimony to the size and efficiency of India’s digital payments, he added.
Das said, the payments landscape in India has evolved into a state-of-the-art system that is affordable, accessible, convenient, fast, safe, and secure.
At the Payment System Operators (PSO) conference in Kochi on March 18, Das said, "in India, there are about 114 crore mobile phone connections1, with urban and rural share being 55% and 45% respectively. Widespread use of mobile phones, coupled with availability of internet services, have provided thrust to digital payments. This has led to “anytime anywhere" banking which transcends traditional branch banking hours."
He added, "About 1,050 crore retail digital payment transactions worth ₹51 lakh crore processed in January 2023 stand as testimony to the size and efficiency of India’s digital payments."
The RBI governor further revealed that Unified Payments Interface (UPI) which was launched in 2016, has revolutionised the payments ecosystem with about 803 crore transactions worth ₹13 lakh crore processed in January 2023 alone.
He said, "It is worth pointing out that the Reserve Bank has been transparent in terms of its data releases and in keeping the ecosystem informed of the actions taken. The intent behind all these efforts is to move towards a less-cash society while maintaining the health of Indian payment systems."
"The expectation is that PSOs would implement regulatory measures in an expeditious manner. Let us work together and make the entire payments ecosystem a win-win for all," Das added.
Digital Payment Index developed by RBI has shot up from 100 base in March 2018 to 377.46 as of September 2022, to which Das said, " is testimony to the long way we have travelled."
However, Das also takes note that the increase in digital payments and their users also brings to the fore potential risks pertaining to cyber security, data privacy, and operational resilience.
He told PSOs to "always be cognisant of the emerging threats and put in place suitable risk mitigation measures."
He added, "A related area that requires focus is outsourcing arrangements of PSOs with their vendors. Service level agreements with vendors should meet minimum standards prescribed by the Reserve Bank. In all such agreements, PSOs’ right to conduct audit of the service provider must always be ensured."
For long-term success, Das guided PSOs to focus on --- (i) ensuring good governance and prudent risk management; (ii) maintaining robust IT infrastructure with cyber resilience; and (iii) putting in place responsive grievance redress mechanism. Efforts may also be made for ensuring wider participation in the framework for offline payments. PSOs may also work on formation of Self-Regulatory Organisations (SROs) for greater good of all stakeholders.
Going forward, Das said, "the achievements of payment systems in India present more exciting opportunities for us. Having successfully implemented so many payment systems domestically on such a large scale, time has come to expand our reach overseas. With the Indian economy getting increasingly integrated with the global system, cross-border payments have assumed greater significance. Our home-grown payment products, UPI and RuPay network, are enhancing their global footprint."
Furthermore, he said, "launch of UPI linkage with Singapore’s PayNow is a major step forward. In future, such linkages with other countries will make cross-border payments simple, affordable and real-time. QR code-based merchant payments through UPI apps are already enabled in Bhutan, Singapore and UAE. All these would also help project India’s soft power at the global level."
Das believes a lot has been achieved in digital payments but "a lot more can and should be done in the days ahead."
He explained that payments and settlements are serious businesses with potential downsides, should anything go wrong. He said, "Our effort should be to mitigate such downsides and capitalise on the upsides. This is something all market participants must recognise and constantly remind themselves. Every failed transaction, every fraud attempted or actually carried out, every complaint that is not satisfactorily addressed should be a cause of concern and must invite a detailed root cause analysis. It would do well to remember that like the batsman on the cricket field, you are only as good as the last ball faced."
In his concluding remarks, he said, " We must together make sure that no one in the country is left behind in the digital payments journey. Under Reserve Bank’s Payments Vision 2025, we stand committed to the core theme of ‘E-Payments for Everyone, Everywhere, Everytime’ (4Es). We must seize every opportunity to internationalise our payment products. This will open up a new world of opportunities for our country. This is the year of Indian Presidency of the G20. "
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
