RBI published the Payment and Settlement Systems in India: Vision-2018. The main motive of RBI to publish this vision is to implement less cash transactions all over India within two years. This is the much awaited vision by RBI because Payment and Settlement Systems is a need nowadays. Everyone wants fast service with significant quality specially in banking sector. We always talk about go green and paperless banking; this vision definitely leads to a green and paperless banking.
Official Vision 2018 Statement
Building best of class payment and settlement systems for a ‘less-cash’ India through responsive regulation, robust infrastructure, effective supervision and customer centricity
Why Vision 2018 needed?
- Physical instruments use declines from 2013 to 2016.
- IMPS (Immediate Payment Service) picking up very fast.
- RTGS, NEFT & POS Transactions are taking place in every banking customer life.
So, this vision may be very helpful to increase the quality service and provide less-cash and timeless banking.
5 C’s concept :
RBI states the 5 C’s outlines that covered the Vision 2018.
- Coverage – To cover the all possible area by electronic banking
- Convenience – To make customer friendly services and products
- Confidence – To increase security aspects and customer protection
- Convergence – To ensure interoperability across service providers
- Cost – To provide cost effective services
4 Strategic initiatives by RBI :
- RESPONSIVE REGULATION- In this initiative, the main area to be covered is policy. New policies will be formed and review of existing policies will be done for betterment.
- ROBUST INFRASTRUCTURE- To provide wide range of fast services to the customer of every field.
- EFFECTIVE SUPERVISION- Supervision framework will be made to provide the full security to customer and prevent the fraud.
- CUSTOMER CENTRICITY- To Frame necessary guidelines to ensure enhanced customer grievance redressal mechanism.
Possible Results of Vision 2018 :
- Less use of physical instruments like Cheque, Draft etc
- More use of IMPS, RTGS & NEFT etc
- An increment in Aadhaar base payment system.
- Direct benefit transfer will be in full swing.
- Pre Independence banking history of India
- What is cheque and Cheque Truncation System 2010
- PSUs Bank Headquarter, CEO / CMD and Slogans
We discussed the Payment and Settlement Systems in India: Vision-2018 from the exam and interview point of view only. For detailed vision and policies, you can download Vision 2018 PDF from RBI website. 5Cs and 4 strategies are very important that may be asked in any exam or interview. At last, Keep Learning Keep uplifting.
All The Best.