In a bid to promote digital payments and make them more accessible, the Reserve Bank of India (RBI) has proposed significant expansions to the e-RUPI voucher system and the streamlining of Bharat Bill Payment System (BBPS) processes.
Under the current system, purpose-specific e-RUPI digital vouchers are issued by banks. However, the RBI now plans to broaden the scope and reach of e-RUPI vouchers through three key measures. Firstly, non-bank prepaid payment instrument (PPI) issuers would be permitted to issue e-RUPI vouchers. This expansion is expected to increase the availability and usage of e-RUPI vouchers across various platforms. Secondly, the issuance of e-RUPI vouchers on behalf of individuals will be enabled, further facilitating the adoption of digital payments. Lastly, the process of issuance, redemption, and other related procedures will be simplified to enhance convenience for users.
Explaining the rationale behind these measures, RBI Governor Shaktikanta Das highlighted their potential to benefit a wider range of users and deepen the penetration of digital payments in the country. “These measures will make the benefits of e-RUPI digital voucher accessible to a wider set of users and further deepen the penetration of digital payments in the country.”
The Bharat Bill Payment System (BBPS) is operational since August 2017. The scope of BBPS was further expanded in December 2022. To further enhance the efficiency of the BBPS system and to encourage greater participation, it is proposed by the RBI to streamline the process flow of transactions and membership criteria for operating units.
Internationalising Acceptance of RuPay Cards
RuPay debit and credit cards issued by banks in India are gaining increased acceptance abroad. It has now been decided by RBI to permit issuance of RuPay Prepaid Forex cards by banks. Das further said: “This will expand the payment options for Indians travelling abroad. Further, RuPay cards will be enabled for issuance in foreign jurisdictions. These measures will expand the reach and acceptance of RuPay cards globally.”
Default Loss Guarantee Arrangement in Digital Lending
The Reserve Bank had issued the regulatory framework for Digital Lending in August/September 2022. With a view to further promoting responsible innovation and prudent risk management, it has been decided by RBI to issue guidelines on Default Loss Guarantee arrangements in Digital Lending. This will further facilitate orderly development of the digital lending ecosystem and enhance credit penetration in the economy.
