Page 37 - Banking Finance December 2022

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permitted for contactless transactions (also known as
tap and pay transactions) using Near Field
Communication enabled EMV chip cards without the
need for AFA from Rs. 2,000 to Rs. 5,000.

B) For Ensuring Affordable Costs,important
initiatives taken by RBI are as under:
1. Retail Direct Scheme:
Reserve Bank of India (RBI) has notified its retail direct
scheme, under which retail participation will be
encouraged in government securities by providing prices
and quotes to retail direct gilt (RDG) account holders,
which will help them in trading in securities.As per the
scheme retail investors have the facility to open an
online RDG account with RBI. account of tampering of cheque leaves, the Reserve
Bank announced a concept of Positive Pay Mechanism
2. Legal Entity Identifier (LEI) for all cheques of value Rs. 50,000 and above. Under
LEI number facilitates unique identification of the this mechanism, cheques are processed for payment by
parties involved in financial transactions worldwide, the drawee bank based on information passed on by its
thereby, improving quality and accuracy of financial data customer at the time of issuance of cheque.
systems and ensuring better risk management post the
global financial crisis. The Reserve Bank has introduce 3. Guidelines on Regulation of Payment Aggregators
the LEI number for all payment transactions of value (PAs) and Payment Gateways (PGs)
Rs. 50 crore and above, undertaken by entities (non- In terms of extant instructions issued by the Reserve
individuals) using centralised payment systems, viz., Bank on regulation of PAs and PGs, PAs cannot store
RTGS and NEFT. customer card credentials within their database or the
server [i.e. Card-on-File (COF)]. Similarly, their on-
3. Operationalisation of PIDF
boarded merchants cannot store the payment data of
The Reserve Bank operationalised PIDF in January 2021 their customers.
to encourage acquirers to deploy payment acceptance
infrastructure in tier-3 to tier-6 centres and north
4. Geo-tagging of Payment System Touch Points
eastern states.The scheme envisages creation of 30 lakh
The Reserve Bank has established a framework to
new touch points every year for digital payments across capture the location and business details of commercial
the country during 2021-23.
bank branches, ATMs and business correspondents
(BCs). It is envisaged to extend a similar framework to
C) For Increasing Customer Confidence RBI has
capture and maintain information about PoS terminals
taken following steps: and other payment system touch points as well.
1. Digital Payments Index (DPI)
The Reserve Bank constructed and published a D) Other Developments:
composite DPI to effectively capture the extent of 1. UPI/RuPay International Outreach Initiatives
digitisation of payments across the country.The RBI-DPI The Reserve Bank participated in regional outreach
index has demonstrated significant growth in the index programmes organised by the Bank for International
representing the rapid adoption and deepening of Settlements (BIS), where the possibility of leveraging
digital payments across the country in recent years. UPI system to facilitate cross-border transactions was
presented to participants.
2. Positive Pay System for CTS
In order to augment customer safety in cheque 2. Developments in CCIL
payments and reduce instances of fraud occurring on CCIL improved risk management by fixing lower limits

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