Mumbai, Mar 5 (KNN) Expected to launch in the current calendar year, an interoperable payment system for internet banking will be introduced by the Reserve Bank of India (RBI), as Governor Shaktikanta Das revealed on Monday.

The interoperable system aims to facilitate swifter fund settlements for merchants and further advance online transactions.

During the 'Digital Payments Awareness Week' festivities in Mumbai, Das revealed that the RBI has sanctioned the implementation of this interoperable system to NPCI Bharat BillPay Ltd (NBBL), a subsidiary of the National Payments Corporation of India (NPCI).

The envisioned system will enable customers to conduct net banking payments to businesses seamlessly, irrespective of whether their banks and the merchants' payment aggregators are integrated.

Currently, online merchant payment transactions rely on non-interoperable payment aggregators, mandating individual bank integrations with diverse online merchant platforms.

"Due to the absence of a payment system and a set of rules for these transactions, there are delays in actual receipt of payments by merchants and settlement risks," stated Das, terming it a bottleneck in the digital payment system.

Asserting the RBI's commitment to India's digital payment journey, Das highlighted the regulatory resolve to address these challenges and facilitate smoother digital transactions.

(KNN Bureau)