Payment Systems & Financial Inclusion : Recent Trends , Challenges & Emerging Issues

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Payment Systems & Financial Inclusion :
Recent Trends , Challenges & Emerging
Issues

Harun R Khan
Deputy Governor
Reserve Bank of India

November 25, 2012
Pune
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Role of Payment Systems in FI
 Simplistic definition
 the way we make and receive payments using different
payment instruments
 Payment systems act as a catalyst in financial inclusion  Enabling payment systems to provide safe, efficient,
affordable, easily accessible and technologically robust
payment services to the unbanked
 Stepping stone for other bouquet of financial services, such as, savings, credit, remittance and insurance possible by
creating enabling features.

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Payment Systems in India:
Vision 2012-15

To proactively encourage electronic payment systems for
ushering in a less-cash society in India and to ensure
payment and settlement systems in the country are safe,
efficient, interoperable, authorised, accessible, inclusive and compliant with international standards.

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Payment Systems in India:
Vision 2012-15
RBI’s renewed commitment towards providing:
 A safe, efficient, accessible, inclusive, interoperable and authorised payment and settlement systems for the country.

 A payment systems to be driven by customer demands of
convenience ease of use and access
 Convergence in innovative e-payment products and capabilities  Integration of various systems through unified solution
architecture and current technology to aid in convergence

 Adoption and usage of resilient payment systems
 Regulation to channelise innovation and competition to meet these demands consistent with international standards and best practices
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Payment Systems in India:
Vision 2012-15
 Increased emphasis on the use of electronic payment
products and services
 accessed anywhere and anytime by all at affordable prices.

 Embracing new technology and innovation to unveil a bouquet of simple, low cost, easy to use modern payment products
and services start to end (for customer),
 Real Time Small Value Gross Transfers, near real time batch processing systems (beyond current timings and number of settlements), 24x7 small value payment systems; Cards; PPIs; GIRO etc.

 Building dexterity of payment systems through standardisation and a broad consultative process
 Overall regulatory policy stance is oriented towards promoting a less cash/less paper society, the “green” initiative
 Vision Statement sets out the roadmap
 to ensure b enefits of a structured m odern payment and settlement systems, including innovative products, to reach out beyond the currently served target groups thereby facilitating greater financial inclusion. 5

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Payment Systems as
Catalyst & Enabler for FI

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