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Central Bank unveils Payment’s vision 2025

June 20, 2022

Central Bank unveils Payment’s vision 2025
The Reserve Bank of India (RBI) has unveiled the Payments Vision 2025 document which proposes a host of innovative payment systems and regulations of BigTechs, fintechs, and buy-now-pay-later (BNPL) systems, and the introduction of a central bank digital currency (CBDC), among others.

“The Payments Vision 2025 promises to further elevate our payment systems towards a realm of empowering users with affordable payment options available anytime and anywhere with convenience,” it said.

The RBI document has proposed enabling geotagging of digital payment infrastructure and transactions and revisiting guidelines for prepaid payment instruments (PPIs), including closed system PPIs. It also proposed a framework for the regulation of all significant intermediaries in the payment’s ecosystem and linked credit cards and credit components of banking products to UPI.

Other proposals include bringing in enhancements to Cheque Truncation System (CTS), including One Nation One Grid clearing and settlement perspective, and creating a payment system for processing online merchant payments using the internet and mobile banking. It also proposed regulation of BigTechs and FinTechs in the payments space.

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