RBI Launches E-Cheques, Broadens Digital Payment Oversight

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AuthorAnanya Iyer|Published at:
RBI Launches E-Cheques, Broadens Digital Payment Oversight
Overview

The Reserve Bank of India's 'Payments Vision 2028' introduces e-cheques and expands regulation to e-commerce, aiming for stronger security and a unified digital payment system. It includes a shared liability model for unauthorized transactions and new risk frameworks for non-bank operators.

New Oversight for E-commerce Platforms

The Reserve Bank of India (RBI) is expanding its regulatory reach. E-commerce marketplaces and central platforms that handle digital payments will now face closer scrutiny. This acknowledges their significant role in the payments system and may lead to more direct regulation.

Securing Digital Transactions: Shared Liability

A key proposal is the 'shared responsibility framework' for unauthorized digital payments. Under this, both the customer's bank and the recipient's bank will share liability, aiming to boost customer trust. Additionally, a Cyber Key Risk Indicators (KRI) framework is proposed for non-bank Payment System Operators (PSOs) to support data-driven IT oversight.

Driving Payment Innovation

Beyond security, the RBI is promoting payment system innovations. These include exploring white-label solutions for Aadhaar Enabled Payment System (AePS) and bringing assisted payment providers under regulatory guidance. A standard Domestic Legal Entity Identifier (DLEI) framework is also planned to better identify parties in transactions and prevent fraud.

Looking Ahead: Cards and Cross-Border Payments

The vision also includes enhancing the card payments system, focusing on tokenization and clear pricing. Plans are underway to review cross-border payment efficiency by 2028, supporting India's global trade integration.

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