A medium-term strategy is needed to accelerate the growth of digital payments, the panel said
A medium-term strategy is needed for accelerating the growth of digital payments, with a regulatory regime conducive to bridging the digital divide by promoting competition, open access and inter-operability in payments, said a government-appointed panel in its report on the way forward for promoting digital payments.
The panel, headed by former finance secretary Ratan P Watal, recommended inclusion of financially and socially-excluded groups and assimilation of emerging technologies in the market. It emphasised safeguarding security of digital transactions and providing a level playing field to all stakeholders and new players who enter this new transaction space.
It has also suggested inter-operability of the payments system between banks and non-banks, up-gradation of the digital payment infrastructure and institutions, and a framework to reward innovations and for leading efforts in enabling digital payments. The panel, which was constituted by finance ministry on August 23, submitted the report to finance minister Arun Jaitley on Friday.
The panel was seized of the developments following the decision of the government to cancel legal tender character of R500 and R1,000 notes on November 8. The committee has calibrated its recommendations accordingly and has provided a suitable framework for a smooth and speedy transition towards a digital-payments economy.