“Payments Vision 2025”: Reserve Bank of India (RBI)
Recently the Reserve Bank of India (RBI) has released the document ‘Payments Vision-2025’.
The current vision document is based on the Payments Vision 2019-21. It outlines the thought process for the period up to December 2025.
- Payments Vision 2025 is based on the G-20’s goal to enhance cross-border payments while also leveraging India’s efforts. In this sequence, it also emphasizes addressing the four key challenges—cost, speed, accessibility and transparency.
- The theme of this document is: E-Payments for Everyone, Everywhere, Every-time’ (4Es))
Vision: Provide safe, secure, fast, convenient, accessible and affordable e-payment option to every user.
Goals for Payments Vision 2025: Integrity, Inclusion, Innovation, Institutionalization and Internationalization.
The various initiatives proposed under the above five goals are expected to achieve the following outcomes:
- The amount of check-based payments must be less than 0.25% of total retail payments.
- The number of digital payment transactions should increase by more than 3 times.
- Unified Payments Interface (UPI) will register an average annual growth of 50% and Immediate Payment Service (IMPS)/ National Electronic Funds Transfer (NEFT) 20%.
- To increase payment transaction turnover to 8% as compared to Gross Domestic Product (GDP).
- Debit card transactions at Point of Sale (POS) will be increased by 20%.
- Cash in circulation (CIC) as a percentage of GDP will be reduced, etc.
Source – The Hindu