The Indian payments industry has grown remarkably over the last few years.
In 2020, as per RBI’s newly released document on Payment & Settlement Systems in India,
RBI has asked payment system operators/service providers, financial institutions, large-scale
and small scale industries, stores and other participants to support the aim of digital payments.
5 million active POS terminals are expected by 2021. In the year 2020, whether it is a grocery
store or an apparel store, finding the right POS System is the need of the hour, One that is safe,
easy plug and play, provides detailed performance reports, and saves retails space because Data
will rule purchasing decisions in 2020. RBI has identified.
5 broad areas of intervention to improve the payment:
- Enhancing the customer experience.
- Empowering payment system providers.
- Introduce Digital PoS in rural and backward areas of India.
- Impactful, low-cost transaction system instalments with effective risk management.
- Improvement in payment infrastructure with dynamic regulations.
Being digital is not just a fashion but a need now. The Smart City programme has provided an
the impetus to digital payments. To create an inclusive, safe and accessible system design, RBI
released a vision document on Payment & Settlement Systems in India in May 2019.RBI’s
Vision 2020-2021 for payment systems will concentrate on a two-pronged approach - exceptional
customer experience and enabling a ‘less-cash’ and a ‘less-card’ environment. This vision also
empowers payment system operators and service providers. With this proposal, RBI is
expecting regulation and risk-free simulation, even in those segments of the population
where digital transaction systems are surreptitious. The focus areas are reduction in cheque
based payments, making it 2% of the retail payments. Growth in UPI and IMPS, increase in
PoS for card transactions and reduction in business decline by 5% annually, improvement in
TAT by instalment of more than 6 million PoS nationwide.Gaurav Chopra, Founder and CEO,
IndiaLends, said, “RBI, through its document, spoke about four goalposts
(4 Cs) – Competition, Cost, Convenience and Confidence”.
RBI predicts the decrement in such case with the use of digital POS wherein customers
will use QR code to process the payment, which is uniquely generated like a captcha.
People who use debit and credit cards swipes at POS terminals get jumped or failed more
than 27% in 2019 than compared to last year. Also, ATM withdrawals grew at a slower
pace of 15%.In 2020, RBI has proposed plans to make POS systems digital, safer and efficient.
In the recently conducted meeting to discuss the Payment and Settlement Systems in
India: Vision — 2019-2021, the idea of the limited usage of cash was entertained by
introducing more and more card swipes/ mobile payment methods to eliminate ATM-related
issues.An increase in online businesses and start-ups are benefiting the RBI proposals
by promoting digital payment to the general public. Analyzing the current growth trend,
5 million active POS are expected by 2021.
Some of the RBI policies in action to promote digital POS are:
• Digital PoS (QR code) systems are expected to grow significantly.
• By 2021, the increase in usage of card payment methods will be six times more from the present
levels.
• The Cash on Delivery (CoD) option will be shifted to the digital PoS system in e-commerce
platforms.
RBI has addressed the following problems to create Payment and Settlement Systems in India:
Vision — 2019-2021: Heavy dependency on internet connectivity, expensive PoS systems
instalments, security issues, failed card transactions. 2020 welcomes QR Codes and Artificial
intelligence payment methods: RBI
Summarizing, instalment of digital payment methods allows online payment to take place
without the intervention of third parties, the transaction fails, frauds, and poor internet connectivity.
Hence ensuring smooth, secure and successful transactions.
-Shreya
💯👌
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