Monday, November 5, 2012

Draft Payment System Vision Document 2012-15 Of RBI

Reserve Bank of India (RBI) is trying really hard to streamline the payment system of India. This is more so regarding the online payment system that needs urgent reforms in India. For instance, RBI has issued guidelines pertaining to national electronic funds transfer (NEFT) system of India but banks in India are not providing positive confirmations of NEFT transactions.  

Similarly Internet banking guidelines in India by RBI have also been issued. However, by and large, cyber security for banking industry of India is not taken seriously in India. Even RBI has warned Indian banks for inadequate cyber security adoption.

Another area that requires urgent attention pertains to mobile banking security. Mobile banking cyber security in India is still an ignored world. In such circumstances adoption of mobile banking in India is a risky policy decision.

Recently, a report of RBI working group on securing card present transaction was also released. Now RBI has released the draft Payment System Vision Document 2012-15 for public consultation. Comments can be sent by email by 31 July, 2012.

The Payments System Vision Document 2012-15 envisages by ways and means of ensuring that “payment and settlement systems in the country are safe, efficient, interoperable, authorised, accessible, inclusive and compliant with international standards”. Accordingly, it proposes to “proactively encourage electronic payment systems for ushering in a less-cash society in India” as its Vision.

The Reserve Bank had earlier published a Vision Document outlining the course of action that would be undertaken in the field of payment and settlement systems over a three year period. The tasks laid out in the above document have been completed to a large extent. The new Vision Document intends to take the Mission further to meet the growing payment needs of the nation.

Source: Corporate Laws In India