RBI’s Three Year Vision – Fintech Sees Huge Opportunities
The Reserve Bank of India’s three-year vision for payments and settlements systems will offer huge opportunities for technology-enabled disruptions in finance, says fintech players.
Merchant acquiring of non-banks, the aid of private entities in retail payments and a broader impact to electronic mandates will begin new market roads for fintech startups, they say.
“While the pursuance towards a ‘less money’ culture advances, followed by the spirit to become a less-card India as well, the effort is to … serve parts of the people which are heretofore spotless by the payment methods,” the division control outlined in its ‘Vision Document on the Payments and Settlements Systems for 2019-2021’.
A customer-centric appearance to assure blocking of fraud in digital channels sets the onus on banks plus digital payments members to guarantee severer safety checks and controls, according to the report. The central bank has also emphasised massively on building customer awareness.
“Providing access to all organised entities to procure their own traders is an accurate move, particularly towards NBFCs and is a sign that there could be further access provided to these players in the prospect,” said Naveen Surya, chairman of Fintech Convergence Council, an industry body for fintech companies. FCC has proposed the point in the past about letting NBFCs to circulate their own credit cards.
To ease digital payments in rural regions, the central bank will farther promote for feature phone-based digital payments. It has investigated for the USSD system of payments to be established, and reform in offline payments. NCMC (National Common Mobility Card) was one such change, where the transactions can take place without internet connections.
Besides innovation, safety and security have been highlighted as significant matters. The fintech industry, though, said innovations in digital consumer onboarding was missing in the vision template.
“Electronic and remote customer onboarding is going to be the key for financial inclusion, there could have been more on that front,” said a top executive of a payments company on the condition of anonymity.
The RBI’s proposal to build a national settlement account for all card systems could, still, turn out to be a crucial action for banks.