Payments Infrastructure Development

Payments Infrastructure Development

November 7, 2022 0 By Kennedyseat

Debt and credit card based payments registered a CAGR of 35% and 33% in terms of volume and value, respectively over the last 10 years. To encourage usage of cards, card infrastructure is required to be robust, strong and secure. Mandating the issue and use of only EMV chip and PIN-based cards has helped build public confidence as it provides more security than the ‘Magstripe only’ cards. The adoption of card payments has also been supported by innovations in the form of contactless payments and tokenisation technologies. Easy access, swift absorption / adoption of new technology and innovation, quality of infrastructure, etc., are crucial elements for ensuring safe and quick payments which help in building confidence in the payment systems.

Proactive regulation and supervision with safety and customer centric initiatives have been the hallmark of developments in the retail payments systems arena and it is a proud feeling to be recognised as a leader across the globe in this sphere. While realising that ‘well begun is half done’, RBI is mindful of the challenges ahead. RBI seeks to usher in a payment ecosystem that enables safe, quick and affordable digital payments to everyone across the length and breadth of the country as well as in the universe of 소액결제 현금화 cross-border payments and transactions. This Booklet is a narrative of how the carefully thought out steps taken by the Reserve Bank of India have resulted in transforming India into a country riding the crest of a wave in the evolution of digital payments.

Credit risk, which may occur due to default of a counterparty, is the risk that a counterparty will not meet an obligation when due. Liquidity risk is when a counterparty will fail to settle an obligation for full value when due, but will do so at some unspecified time thereafter. 14.8 CCIL offers non-guaranteed settlement of cross currency transactions through CLS Bank on a PVP basis. 14.7 CCIL extends guaranteed settlement of trades in IRS and FRA referenced to Mumbai Interbank Offer Rate , and Mumbai Interbank Overnight Indexed Swaps benchmarks. Instruments covered under IRS and FRA are IRS – fixed float and basis swaps referenced to MIBOR and MIOIS with maximum maturity of 10 years and FRA with maximum maturity of 10 years. CCIL also commenced clearing of IRS trades referenced to MIFOR benchmark with maximum maturity of 5 years from November 19, 2018.

BPSS submits a report on activities of the payment systems to the Central Board of RBI on an annual basis. 15.10 To mitigate these risks, the settlement agency operates a Settlement Guarantee Fund . The SGF provides a cushion for any residual risk and operates like a self-insurance mechanism wherein members themselves contribute to the fund. In the event of a member failing to meet its settlement obligation, on the settlement date and thereafter, then the fund is utilised to the extent required for successful completion of the settlement. The remaining participating member banks will make contribution towards sharing of loss in accordance with the defined loss sharing mechanism put in place. This eliminates counter-party and settlement risks as the settlement takes place on time irrespective of default by isolated members.

8.12 As on November 30, 2020, there were 54.19 lakh PoS terminals deployed across the country. While India made considerable progress with reference to the absolute number of PoS terminals deployed, the number of persons served by a PoS terminal continues to be high at approximately 250. In order to increase the acceptance infrastructure, which also includes installation of PoS machines, RBI has announced the operationalisation of a Payments Infrastructure Development Fund . 3.3 NPCI started with 10 core promoter banks (State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N. A. and HSBC) as shareholders. In the year 2016, the shareholding of NPCI was broad-based to include more banks representing all sectors. As on date, the number of shareholders of NPCI is 67, comprising 11 public sector banks, 18 private sector banks, 5 foreign banks, 10 cooperative banks, 7 Regional Rural Banks , 4 Small Finance Banks , 2 Payment Banks and 10 PSOs.