Reserve Bank of India’s (RBI) deputy governor R Gandhi said on Tuesday that the central bank will release the vision document on payment systems for the next three years.
“The Reserve Bank is working on the next payments system vision document. In this context, it is also imperative that market participants also continue to take serious interest in developing the payments system. That will need quite a catalytic effort from common interest groups,” Gandhi said, while speaking at an event organised by the National Payments Corporation of India (NPCI).
The RBI has been periodically bringing out the payment system vision document since 1998.
The latest one which got completed was for the period 2012-2015.
Gandhi said the RBI is working on the next vision document which will cover what development initiatives the central bank should be encouraging the entire industry to undertake and all other things.
“We will be working on that. So far we have been doing for three years. Let us see. It is work in process right now. We should be able to bring it quickly,” Gandhi added.
The deputy governor also emphasised on the need for certain strategic actions for being a part of the ensuing payment revolution in the country. Gandhi said it is of critical importance that the population in over six lakh villages in the country is exposed to alternate delivery channels. “Some estimates indicate that to reach the average levels of BRIC countries, India will need 20 million POS terminals as against the current 1.2 million. This is a tall order,” he added.
The deputy governor also stressed the importance of interoperatability, simplicity, standardisation and role of
security in promoting the digital channels.
Commenting on the review of Strategic Debt Restructuring (SDR) regulations, Gandhi asserted that the central bank is constantly taking into account the feedback it receives from banks as is the case with any regulation.
“Wherever it is hurting them, they will take it back with us. It is a continuous process and here there is no time limit.
We have a set of instructions on SDR. If they find some problem in implementation or if we find some problem in the way they are implementing, we will correct it,” Gandhi pointed out.
On the issue of bringing down the non-performing assets of banks by March 2017, Gandhi said that the central bank is conducting supervisory discussions with banks on a case to case basis.
“That is a supervisory discussion with the banks. For respective banks, it will be differing. There is no common approach. Regulation will be across (while) supervision will be specific to a bank’s current status. That will be differing from bank to bank,” Gandhi asserted.