Mumbai: In a significant move to enhance digital payments in India, the Reserve Bank of India (RBI) Governor, Shaktikanta Das, announced on March 4 that the central bank has granted approval to NPCI Bharat BillPay Ltd (NBBL) to launch an interoperable payment system for internet banking. The governor emphasized that this initiative aims to facilitate quicker settlement of funds for merchants and is scheduled to be implemented later this calendar year.

Speaking at the Digital Payments Awareness Week celebrations held at RBI in Mumbai, Governor Shaktikanta Das expressed confidence that the introduction of this interoperable payment system would bolster user confidence in digital payments. He reiterated the regulator's commitment to playing an active role in India's ongoing digital payments journey.

Governor Das urged all stakeholders, including industry players, payment system operators, media, digital payment users, and others, to join hands in fulfilling the mission of 'Har Payment Digital' (Every Payment Digital). He highlighted internet banking as one of the oldest and preferred modes for online merchant payment transactions, encompassing areas such as income tax, insurance premiums, mutual fund payments, and e-commerce transactions.

Currently, online transactions processed through Payment Aggregators (PAs) lack interoperability, requiring banks to individually integrate with each PA associated with different online merchants. Governor Das emphasized the challenges posed by this fragmented system, stating that for a customer to make a payment from their bank account to a specific merchant, both the merchant's PA and the customer's bank must have a pre-existing arrangement. With numerous payment aggregators in play, it becomes logistically challenging for each bank to integrate with every PA, leading to inefficiencies in the system.

The RBI's approval for the interoperable system to NPCI Bharat BillPay Ltd is seen as a positive step towards streamlining online merchant transactions, eliminating the need for separate integrations and fostering a more efficient digital payments ecosystem.

As India continues to embrace digital transformation, initiatives like these align with the government's broader vision of promoting a cashless economy and expanding financial inclusion through technological advancements. The upcoming launch of this interoperable payment system is anticipated to contribute significantly to the growth and convenience of digital payments in the country.

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