Page 35 - BANKING FINANCE APRIL 2024

ARTICLE

FUTURISTIC

APPROACH OF

INDIAN PAYMENT &

SETTLEMENT

SYSTEM

"RBI Payment Vision 2025"

Introduction: after COVID-19 the adoption of digital mode of transaction
has been steeped up. The National Payment Corporation of
The reserve bank of India is the guiding institution for the
India which was constituted in 2016 has played a vital role
development of the payment and settlement system in the
country. Through the policy and procedure the RBI ensures in designing the new payment and settlement mechanism
through adoption of modern technology and easy payment
a smooth payment and settlement ecosystem in the country.
interface which is being largely appreciated by all the
The primary concern of RBI for payment system is to ensure
stakeholders of payment and settlement system.
Safe, Secure, Sound, Efficient, Accessible and Authorized
payment systems in the country.
Now UPI is logging more than 220 million transactions per
day. The inception of UPI and QR has attracted not only the
In India Payment and settlement is being regulated by the
Payment and Settlement act 2007. In recent past India has educated society of the country but also a common Indian
who is living in the remote village and accepting his receipts
witnessed a drastic change in the behavior of the
through the QR code provided by NPCI.
countrymen in relation to the payment and collection
behavior. Though there was a significant presence of digital
The modern avatar of payment and settlement system of
ecosystem of payment and settlement in the country but
India is not only lauded the countrymen but also got well
appreciation from the entire globe. In September 2022 the
number of banks live on UPI were 358 and UPI registered
6870.80 million number of transactions amounting to Rs
11,16,463.10 crore. This high volume of transaction reflects
the acceptability and popularity of the modern age payment
and settlement system.

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