Page 35 - Banking Finance December 2022
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ARTICLE











          REGULATOR'S



          DIGITAL




          INITIATIVES AND




          REGULATIONS













                   s we all know that digital disruption in Banking  Rs 200 per transaction and an overall limit of Rs 2,000 for
         A         and Financial Services is creating plethora  of  An offline digital payment means a transaction which does
                                                              all transactions until balance in the account is replenished.
                   opportunities for service provider to come up
                                                              not require internet or telecom connectivity. Under this new
                   with innovative digital products and serve their
                   customers well  but at  the  same  time it is a  framework, such payments can be carried out face-to-face
          challenging assignment for the Regulators to keep pace with  (proximity mode) using any channel or instrument like cards,
          the fast-changing ecosystem for providing safe, secure and  wallets and mobile devices. Such transactions would not
          cost-effective financial services by creating state-of-the-art  require an Additional Factor of Authentication (AFA).
          payment and settlement systems in the country.
                                                              The  Reserve  Bank  of  India  (RBI)  has  created  a  new
          Giving a big push to digital transactions in areas with poor  department  to  identify challenges and opportunities in
          internet connectivity, the Reserve Bank of India (RBI) has  financial technology, particularly around cryptocurrency. The
          recently allowed offline mode of payments using any channel  department could be active on the cryptocurrency front, in
          or instrument like cards, wallets or mobile devices.  terms of framing regulations. Apart from cryptocurrency,
                                                              experts believe the creation of the RBI's central bank digital
          According to the RBI, transactions are subject to a limit of  currency will also fall under its purview.

                                                              Likewise, various initiatives  were  undertaken by RBI to
                               About the author
                                                              facilitate  digital  penetration by  enhancing acceptance
                         Rajiv Jamuar                         infrastructure across the country and introducing innovative
                         Asst. General Manager (Faculty)      payment options to deepen the reach of payment systems.
                         Union Bank of India
                         Staff College Bengaluru
                                                              A) For improving customer's convenience, some

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