RBI appoints 5-member committee to deepen digital payments

RBI appoints 5-member committee to deepen digital payments

Reserve Bank of India (RBI) Governor Shaktikanta Das has said that RBI appointed Five-member committee under the chairmanship of Nandan Nilekani to further deepen digital payments and enhance financial inclusion through Fintech. The RBI has requested the committee to give recommendations in 3 months in this regard.

♦ The objective of the conclave is to shape India’s continued ascendancy in FinTech, build the narrative for future strategy and policy efforts, and to deliberate steps for comprehensive financial inclusion.

♦ A nation India must move for universal financial inclusion and total retail payment has grown nine folds in last five years. He said a consultation process with payment banks including seven purely digital loan companies will happen soon.

♦ NITI Aayog CEO Amitabh Kant said India’s ambition is to emerge as a 10 trillion dollar economy and this is not possible without a revolution in the Fintech sector.

♦ Department of Economic Affairs secretary Subhas Chandra Garg said almost every customer in the banking system is connected digitally today even in the rural areas. Digital payments and UPI have now become an accessible and feasible alternative for cash transactions.

♦ Nearly 300 Representatives from across the financial space – central ministries, regulators, bankers, startups, service providers and entrepreneurs are participating in the conclave. 

♦ Financial technology, often shortened to Fintech, is computer programs and a new technology innovation that aims to compete with traditional financial methods in the delivery of financial services.

Other Members of the committee:

Other members are former Deputy Governor of RBI –
  • H.R. Khan, former Secretary,
  • Ministry of Information Technology and Steel – Aruna Sharma,
  • Former MD&CEO of Vijaya Bank – Kishore Sansi,
  • Chief Innovation Officer, Center for Innovation, Incubation & Entrepreneurship (CIIE), IIM Ahmedabad – Sanjay Jain.

Terms of Reference of Committee: 

  • It will review existing status of digitization of payments in the country and identify current gaps in digital payment ecosystem and suggest ways to bridge them.
  • It will assess the current levels of digital payments in financial inclusion.
  • It will undertake global analyses with view to identify best practices that can be adopted in India to accelerate digitization of economy and financial inclusion through greater use of digital payments.
  • It will suggest measures to strengthen safety and security of digital payments.
  • It will provide road map for increasing customer confidence and trust while accessing financial services through digital modes.
  • It will suggest a medium-term strategy for deepening of digital payments.

The Hindu Review Daily Gk Update : 26th March 2019 : Download PDF

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