RBI ENVISIONS FOURFOLD GROWTH IN DIGITAL TRANSACTIONS BY 2021

Prelims level : Economics Mains level : GS-III Technology, Economic Development, Environment
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Why in News:

  • The Reserve Bank of India (RBI) has envisaged four times growth in digital transaction in two years, in the payment system vision document for 2019-2021.

Background:

  • Payment Systems Vision 2021, with its 36 specific action points and 12 specific outcomes, aims to achieve a ‘highly digital’ and ‘cash-lite’ society through the goal posts of competition, cost effectiveness, convenience and confidence (4Cs).

Payment Systems Vision 2021:

  • The ‘Payment and Settlement Systems in India: Vision 2019 – 2021’, with its core theme of ‘Empowering Exceptional (E)payment Experience’, envisages to achieve “a highly digital and cash-lite society” through the goal posts of competition, cost effectiveness, convenience and confidence (4Cs).
  • Payment systems landscape will continue to change with further innovation and entry of more players which is expected to ensure optimal cost to the customers and freer access to multiple payment system options.
  • payment systems like UPI/IMPS are likely to register average annualised growth of over 100 per cent and NEFT at 40 per cent over the vision period (period up to December 2021).
  • The number of digital transactions is expected to increase more than four times from 2,069 crore in December 2018 to 8,707 crores in December 2021.
    creating customer awareness, setting up a 24X7 helpline and self-regulatory organisation for system operators and service providers, among others.
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