The Reserve Bank’s Payments Vision 2025 plan, which wants to triple the volume of digital payments, is progressive, according to industry players, and intends to build India as a worldwide payments powerhouse. In light of rising geopolitical threats, the RBI released its Payments Vision 2025 document, which discusses ring-fencing domestic payment networks, as well as the necessity to enforce domestic processing of payment transactions.
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- One of the most important forward-looking initiatives is the internationalisation of UPI, RTGS, NEFT, and RuPay cards, where bilateral treaties with countries, particularly those covering the USD, GBP, and Euro, will greatly benefit Indian residents and their counterparts abroad with online realisation at lower costs.
- With a steady push from the government and the rise of rural fintechs, Dilip Modi, founder of Spice Money, noted that while the epidemic raged over the country, India was on its way to realising its payments vision, and digital payments grew dramatically in volume and popularity.
- It is encouraging to see the RBI taking steps to improve safety and security for rural residents, where digital and financial literacy remain major concerns.
- According to the RBI, overall digital payments surged by 216 percent in volume and 10% in value in March 2022 compared to March 2019.
- Paper instrument usage, on the other hand, has decreased dramatically during the same time period, with its proportion of total retail payments falling from 3.83 percent to 0.88 percent in volume and from 19.62 percent to 11.47 percent in value.
- The central bank said in a statement that the document, titled Payments Vision 2025, was created after taking into account input from various stakeholders as well as recommendations from the RBI’s Board for Regulation and Supervision of Payment and Settlement Systems.