‘Launch of interoperable payment system for internet banking in 2024’

Mumbai: Reserve Bank Governor Shaktikanta Das on Monday said the launch of interoperable payment system for internet banking is likely in 2024 which will facilitate quicker settlement of funds for merchants. Internet banking is one of the oldest modes for online merchant payment transactions and is a preferred channel for payments like income tax, insurance premium, mutual fund payments, and e-commerce, among others.

Currently, such transactions processed through Payment Aggregators (PAs) are not interoperable, meaning, a bank is required to separately integrate with each PA of different online merchants.

“Given the multiple number of payment aggregators, it is difficult for each bank to integrate with each PA. Further, due to lack of a payment system and a set of rules for these transactions, there are delays in actual receipt of payments by merchants and settlement risks,” Das said while addressing the Digital Payments Awareness Week celebrations here.

Keeping in view these bottlenecks, the RBI’s Payments Vision 2025 had envisaged an interoperable payment system for internet banking transactions. In pursuance of the objective, the central bank had given approval for implementing such an interoperable system to NPCI Bharat BillPay Ltd (NBBL).

“We expect the launch of this interoperable payment system for internet banking during the current calendar year. The new system will facilitate quicker settlement of funds for merchants,” Das said.

The measure, he said will further boost the user confidence in digital payments.

“As a regulator, we are committed to playing our part in India’s journey in digital payments,” the governor said. The Governor further said the flagship of the country’s payment systems, the UPI’, has become the most talked about fast payment system not only in India but across the world.