Reserve Bank of India has released a discussion paper on August, 17 on “Charges in Payment Systems” for public feedback through email. The feedback can be provided on the questions raised in the discussion paper or any other suggestion on or before 3 October 2022.
“The focus of RBI’s initiatives in the payment systems has been to ease frictions which may arise from systemic, procedural or revenue related issues. While there are many intermediaries in the payments transaction chain, consumer complaints are generally about high and non-transparent charges,” the banking regulator said in a statement.
Also stated that the charges for payment services should be reasonable and competitively determined for users while also providing optimal revenue stream for the intermediaries. The RBI said to ensure this balance, it was considered useful to carry out a comprehensive review of the various charges levied in the payment systems by highlighting different dimensions and seeking stakeholder feedback.
The discussion paper addresses every facet of fees associated with payment systems like Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) system, Real Time Gross Settlement (RTGS) system, and Unified Payments Interface (UPI), as well as different payment methods like debit cards, credit cards, and Prepaid Payment Instruments (PPIs). The RBI added that it will establish policies and select intervention tactics based on the feedback.
Consumers have an excellent opportunity to discuss their worries and difficulties with debit and credit charges with the Indian central bank. RBI could use feedback to direct policies and interventionist tactics. Before or on October 3, 2022, feedback can be sent to this dpssfeedback@rbi.org.in address.
