RBI to establish self-regulatory organization for digital payments
Those who use cheques can expect clearing to become faster and safer across the country with the Reserve Bank of India (RBI) now planning to implement a pan-India Cheque Truncation System (CTS) from September 2020. Till now CTS was only operational in major clearing houses.
The Reserve Bank of India (RBI) will establish self-regulatory organization (SRO) for orderly operation of entities in the payments ecosystem and establish best practices in the industry. RBI will also come out with a digital payments index to map the accuracy the penetration of different digital payments modes. RBI has also announced to make pan-India Cheque Truncation System operational by 2020.
The Reserve Bank of India (RBI) has announced setting up of self-regulatory organization for digital payments system.
Reading out the statement on development and regulatory policies, RBI Governor, Shaktikanta Das said, “With substantial growth in digital payments and maturity gained by entities in the payment ecosystem, it is desirable to have a Self-Regulatory Organisation (SRO) for orderly operations of the entities in the payment system.”
The RBI will bring a framework for establishing the SRO by April 2020 to foster best practices on security, customer protection and pricing among other few concerns of the industry. The SRO will be a two way communication channel between the payment ecosystem players and regulator/supervisor.
Further, RBI will also come out with a periodic “Digital Payments Index” (DPI) to capture to extent of digitization of payments effectively. The DPI would setup on multiple parameters and will aim to reflect the accuracy and deepening of different digital payment modes. The DPI will be made available from July 2020 onwards.
RBI will also make a pan-India Cheque Truncation System (CTS) operational by 2020. Currently the CTS is operational only at major clearing houses.
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