innovationinbanking

            Reserve Bank of India released a report on “Benchmarking India’s Payment Systems” on Tuesday   i.e 4 th June 2019 in the late night. e-Money is prepaid value stored electronically, which represents a liability  of the e-money issuer (a bank, an e-money institution or any other entity  authorised or allowed to issue e-money in the local jurisdiction) and which  is denominated in a currency backed by an authority. In India, Prepaid Payment Instruments issued as Wallets and Cards are included. This report provides a comparative position of the payment system ecosystem in India relative to comparable payment systems and usage trends in other major countries. Reserve Bank of India (RBI) has relied on publicly available information in this report. Payment Systems have been rated on the basis of categories, which are as under: (a) “Leader”: ranked 1st or 2nd or 3rd; (b) “Strong”: in the top rungs of the countries other than the leader

           The committee’s report is an exhaustive one and requires detailed reading to understand it’s recommendations and the impact on Safe ePayments in India.           In my view, the following three recommendations are the most significant which will quicken the adoption of Safe ePayments in India.           The other recommendations revolve around these three recommendations. Page 140 : In case of time-bound payments, there should be sufficient disincentive built into the system to prevent the use physical or paper-based payment options by citizens making last-minute payments and force the users to adopt only digital payments. For instance, Government may consider doing away with the practice of keeping bank branches open on last few days of fiscal year closing (March 31st) even when they fall of holidays / Sundays, just to facilitate cheque / cash payments. Page 144 : Introduce a closed loop wallet for Government transactions Recommendation 69: In o

          Wait, do not rush yet, only NACH Debit Mandates under Pradhan Mantri Shram Yogi Maan-dhan (PMSYM) are eligible to be registered on the NACH Debit Mandate platform without signature verification.           The PMSYM seeds were sown in the interim budget 2019-2020 of Shri Piyush Goyal. Extract from Interim Budget 2019-2020 Speech of Piyush Goyal Minister of Finance dt.February 1, 2019. Para 37 QUOTE Half of India’s GDP comes from the sweat and toil of 42 crore   workers in the unorganised sector working as street vendors, rickshaw pullers, construction workers, rag pickers, agricultural workers, beedi workers, handloom, leather and in numerous other similar occupations. Domestic workers are also engaged in big numbers. We must provide them comprehensive social security coverage for their old age. Therefore, in addition to the health coverage provided under ‘Ayushman Bharat’ and life & disability coverage provided under ‘Pradhan Mantri Jeevan