RBI Unveils Payments Vision 2028 To Strengthen Digital Ecosystem

New Delhi, Mar 28 (KNN) The Reserve Bank of India has unveiled its Payments Vision 2028 document, titled ‘Shaping India’s Payment Frontier’, outlining a strategic roadmap to enhance innovation, security, and efficiency in the country’s rapidly expanding digital payments ecosystem.

The vision document sets the course through December 2028, focusing on strengthening existing infrastructure while driving future-ready payment systems that are resilient, inclusive, and technologically advanced.

Focus on Fraud Protection and Consumer Safety

A key proposal includes exploring a ‘switch on/off’ functionality across all digital payment modes, allowing users to control transaction access similar to existing card controls. 

The RBI has also proposed a shared responsibility framework, under which both issuing and beneficiary banks would share liability in cases of unauthorised digital transactions, aimed at strengthening fraud prevention and consumer protection.

Additionally, a Cyber Key Risk Indicators (KRI) framework is planned for non-bank Payment System Operators to improve cyber resilience and enable real-time risk monitoring.

Cross-Border Payments to Be Revamped

The central bank has proposed a comprehensive review of cross-border payment systems to make them faster, cheaper, and more transparent. Dedicated reports will track global benchmarks, transaction costs, and operational efficiencies.

Efforts will also include examining a single-window authorisation process under the Payment and Settlement Systems Act (PSS Act) and the Foreign Exchange Management Act (FEMA) to improve ease of doing business in cross-border transactions.

To simplify regulatory processes, the RBI will explore streamlined approvals and the introduction of a perpetual regulatory sandbox for small payment system providers. 

A new Payments Switching Service (PaSS) is also under consideration, which would enable seamless migration of payment instructions when customers change bank accounts.

Boost for MSMEs and Interoperability

The vision document proposes full interoperability across Trade Receivables Discounting System (TReDS) platforms, aimed at improving access to finance for MSMEs. Additional measures include factoring with recourse and expanding receivables discounting for export-oriented MSMEs.

Innovation in Payments Ecosystem

The RBI plans to promote innovation through an open and interoperable card ecosystem, introduction of electronic cheques, and AI-enabled unified access to payments data. These initiatives are expected to enhance transparency, foster competition, and improve user experience.

To strengthen financial stability, the RBI will examine the introduction of a Domestic Legal Entity Identifier (DLEI) for non-individual entities and consider expanding regulatory oversight to include critical participants in the digital payments ecosystem, including certain large platforms.

The central bank also plans to enhance research and training capabilities in areas such as digital payments, cybersecurity, and cross-border transactions, while strengthening collaboration with global institutions and central banks.

Overall, Payments Vision 2028 aims to consolidate India’s position as a global leader in digital payments by balancing innovation with robust regulatory oversight and consumer protection.

(KNN Bureau)