In a series of announcements aimed at fortifying the digital payments landscape in India, RBI Governor Shaktikanta Das unveiled several key initiatives during the Monetary Policy Statement on Friday. These measures are designed to enhance the safety, security, and convenience of digital transactions, while fostering innovation within the fintech sector.
Digital payments intelligence platform: Recognizing the surge in digital payment frauds despite numerous measures to bolster security, the Reserve Bank of India is set to establish a Digital Payments Intelligence Platform. This platform aims to provide network-level intelligence and facilitate real-time data sharing across the digital payments ecosystem. The initiative is expected to take a system-wide approach to prevent and mitigate frauds effectively. To spearhead this initiative, the RBI has constituted a dedicated committee to explore various aspects of setting up the platform.
Expansion of e-mandate framework: In a move to streamline recurring payments, the RBI plans to include payments like the replenishment of balances in Fastag and National Common Mobility Card (NCMC) under the e-mandate framework. Unlike traditional recurring payments, these transactions do not have a fixed periodicity. By integrating them into the e-mandate framework, customers will be able to automatically replenish their balances when they fall below a pre-set threshold. This enhancement aims to simplify travel and mobility-related payments, ensuring seamless transactions for users.
Auto-replenishment of UPI Lite wallets: UPI Lite, introduced in September 2022, has facilitated quick and seamless small-value payments through an on-device wallet. To encourage broader adoption, the RBI now proposes to include UPI Lite wallets under the e-mandate framework. This new feature will allow customers to automatically replenish their UPI Lite wallets once the balance dips below a specified threshold, further enhancing the convenience of making small-value digital payments.
HARBINGER 2024 – Innovation for Transformation: Continuing its support for fintech innovation, the RBI announced the third edition of its global hackathon, ‘HaRBInger – Innovation for Transformation.’ Scheduled to launch shortly, HaRBInger 2024 will focus on two themes: ‘Zero Financial Frauds’ and ‘Being Divyang Friendly.’ This initiative follows the success of the first two editions, held in 2022 and 2023, and aims to drive innovative solutions that address key challenges in the financial sector.
Governor Das emphasized the RBI’s commitment to fostering a secure and user-friendly digital payment environment stating that these initiatives reflect RBI’s ongoing efforts to promote innovation, enhance security, and improve the overall user experience in the digital payments ecosystem.
