RBI bats for more payment platforms

The Reserve Bank of India (RBI) proposed the idea of a new pre-paid instrument for payments up to ₹10,000 for buying goods and services. The loading /reloading of such pre-paid instrument will be only from a bank account and used for making only digital payments such as bill payments, merchant payments, etc.

Government’s United Payment Interface (UPI) and the likes of GooglePay, Paytm, Mobikwik and payment apps of banks like HDFC Bank’s PayZapp and State Bank of India’s Yono are the major modes of such transactions. A digital payments in India, in terms of value, is expected to more than double to ₹4,055.0 trillion in FY24 from ₹1,630.0 trillion in FY19, translating into a five-year CAGR of 20%, as per a CRISIL Research.