RBI publishes discussion paper on payment systems fees
The Reserve Bank of India (RBI) has released a Discussion Paper on Fees in Payment Systems seeking public comment via email no later than October 3, 2022.
“The goal of RBI’s initiatives in payment systems has been to mitigate friction that can arise from systemic, procedural or revenue-related issues. Although there are many intermediaries in the payment transaction chain, consumer complaints are usually about high and non-transparent fees,” the banking regulator said in a statement.
Stating that fees for payment services should be reasonable and competitively determined for users while providing an optimal revenue stream for intermediaries, the RBI said that to ensure this balance, it was deemed useful to proceed with a full review of the various fees taken from the payment. systems by highlighting different dimensions and soliciting feedback from stakeholders.
The working paper covers all aspects related to fees in payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer System (NEFT), Real Time Gross Settlement System (RTGS) and the Unified Payment Interface (UPI) and various payment instruments such as debit cards, credit cards and prepaid payment instruments (PPI). Based on the comments, the RBI said it would set policies and decide on intervention strategies.