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    02SP00FC7956

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    02SP00FC7956

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    02SP19032024F07E8483A14A4A9DBB48C82D00FC7956

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    of 2

    Address by Governor, Reserve Bank of India at the SPEECH

    Digital Payments Awareness Week Celebrations

    Address by Governor, Reserve user-friendly interface and facilitating QR code-based


    payments, the UPI has evolved to include advanced
    Bank of India at the Digital functionalities such as offline payments through near
    Payments Awareness Week field communication (NFC) technology (UPI Lite X),
    payments through feature phones (UPI 123Pay), AI
    Celebrations* based conversational payments (hello! UPI), etc.

    Shaktikanta Das It is also worth noting that progressively it has


    taken less time for reaching tipping point of next 1000
    It gives me immense pleasure to be here to crore transactions in UPI. While reaching the first
    celebrate the Digital Payments Awareness Week 1000 crore UPI P2M transactions, it took 1668 days
    organised by the Reserve Bank of India. Over the (~4.56 years), the latest 1000 crore transactions took
    years, we have not only navigated through the fast- just 45 days. Similarly, for UPI P2P transactions, while
    evolving technological innovations but also played reaching the first 1000 crore UPI P2P transactions
    a pivotal role, as a catalyst, in developing one of the took 1329 days (~3.63 years), the latest 1000 crore
    most modern payment systems in the world, be they transactions took 65 days or just over two months2.
    large value, retail or fast payments. This has been The recent progress of the UPI has thus been
    made possible by nurturing diverse payment systems enormous. Currently, UPI is processing close to 42
    in the country, namely, the bill payments, merchant crore transactions in a day.
    payments, vendor payments, transit payments, or There is, however, considerable scope for
    recurring payments. expanding the use of digital payments in India. Last
    We have seen retail digital payments in India year, we had embarked on a mission to make every
    growing from 162 crore transactions in FY2012-13 person in India a user of digital payments - “Har
    to over 14,726 crore transactions in 2023-24 (till Payment Digital”. It was aimed at reinforcing the ease
    February 2024) i.e., approximately 90-fold increase and convenience of digital payments and thereby
    over 12 years. Today, India accounts for nearly 46% facilitate onboarding of new consumers into the
    of the world’s digital transactions (as per 2022 data)1. digital fold. Since the start of the mission in March
    The extraordinary growth in digital payments is also 2023, the number of new UPI users added has been
    evident in the Reserve Bank’s Digital Payment Index, 6.65 crore between March 1, 2023 to January 31,
    which has witnessed a four-fold rise in the last five 2024. The Reserve Bank’s Payments Infrastructure
    years. Development Fund (PIDF) has also further aided this
    growth, with additional deployment of over 1.2 crore
    The flagship of our payment systems, the ‘UPI’,
    digital payment touch points.
    has become the most talked about fast payment system
    not only in India but across the world. It is the biggest Trust in digital payments is built on the pillars
    contributor to the growth of digital payments in India. of transparency, ease of use and above all, security.
    The share of UPI in digital payments has reached close Hence, reinforcing the notion of safety and security of
    to 80 per cent in 2023. At a macro level, the volume the system is very important. With today’s message of
    of UPI transactions increased from 43 crore in CY- – “Digital Payment, Safe Payment” – “Digital Payment,
    2017 to 11,761 crore in CY-2023. Apart from being a Surakshit Payment”, we are aiming to create awareness
    around safety and security of Digital Payments. The
    * March 4, 2024, RBI, Mumbai
    1 https://pib.gov.in/PressReleasePage.aspx?PRID=1973082 2 Data analysed till December 31, 2023

    RBI Bulletin March 2024 5


    SPEECH Address by Governor, Reserve Bank of India at the
    Digital Payments Awareness Week Celebrations

    goal is to reach out and empower every individual Payments Fraud Information Registry (CPFIR) for
    with the knowledge and tools necessary to navigate reporting4 of all payments related frauds.
    this digital payments landscape with confidence and
    Internet Banking is one of the oldest modes for
    ease.
    online merchant payment transactions. It is a preferred
    Currently, the Reserve Bank, through its regional channel for payments like income tax, insurance
    offices, conducts Electronic Banking Awareness and premium, mutual fund payments, e-commerce, etc. At
    Training (e-BAAT) programmes across the country. present, such transactions processed through Payment
    The main thrust of e-BAAT programme comprises of: Aggregators (PAs) are not interoperable, i.e., a bank
    i. Awareness about Digital Payment Products; is required to separately integrate with each PA of
    different online merchants. As a result, if a customer
    ii. Awareness about Frauds and Risk Mitigation;
    wants to make payment from his bank account to a
    and
    certain merchant, the merchant’s PA and customer’s
    iii. Awareness about redress of grievances.
    bank must have an arrangement. Given the multiple
    In addition, the Reserve Bank conducts number of payment aggregators, it is difficult for
    360-degree, multimedia and platform based public each bank to integrate with each PA. Further, due to
    awareness campaigns under the tag of ‘RBI Says’ or lack of a payment system and a set of rules for these
    ‘RBI Kehta Hai’. Going forward, all the regional offices transactions, there are delays in actual receipt of
    of the Reserve Bank will start regional campaigns to payments by merchants and settlement risks.
    develop marketplaces like vegetable markets / mandis
    Keeping in view these bottlenecks, in our Payments
    and public transport infrastructure like auto/ taxi
    Vision 2025, we had envisaged an interoperable
    drivers as digitally enabled clusters in their chosen
    payment system for internet banking transactions. In
    areas.
    pursuance of this objective, we have given approval
    Historically, the Reserve Bank has been a for implementing such an interoperable system to
    trendsetter in ensuring security of digital payment NPCI Bharat BillPay Ltd (NBBL). We expect the launch
    transactions. We were one of the first countries to of this interoperable payment system for internet
    fully adopt additional factor of authentication (AFA). banking during the current calendar year. The new
    Since then a host of measures such as EMV3 Chip system will facilitate quicker settlement of funds for
    and PIN based cards; transaction alerts; facility to merchants.
    switch on and off and set or modify transaction limits
    This measure will further boost the user
    for all types of transactions; tokenisation of cards;
    confidence in Digital Payments. As a regulator, we
    restrictions on storage of actual card data; localisation
    are committed to play our part in India’s journey in
    of payments data etc., have been implemented to
    digital payments. I urge all stakeholders like industry,
    enhance the security of digital payments.
    payment system operators, media, digital payment
    All operators and participants of authorised users, and others to take up the responsibility of
    payment systems are required to do time-bound fulfilling the mission of ‘Har Payment Digital’. It is
    resolution of failed transactions. Failure to do so a mission not just for the Reserve Bank but for the
    may lead to payment of compensation to the users. entire country.
    Similarly, we have also implemented a web-based
    Thank You, Namaskar
    payment-related fraud reporting solution - Central
    4 All payment-related frauds either reported by the customer to the
    issuer banks / non-bank Prepaid Payment Instrument (PPI) issuers / non-
    3 EMV is short for Europay, Mastercard and Visa: the three companies bank Credit Card issuers [together termed as Regulated Entities (REs)] or
    that created the EMV standard. detected by the REs themselves, are required to be reported to the CPFIR.

    6 RBI Bulletin March 2024

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