Reserve Bank of India (RBI) Releases Payment System Report, December 2024

Reserve Bank of India (RBI) Releases Payment System Report, December 2024

The Reserve Bank of India (RBI) has published its bi-annual Payment System Report, which reviews trends in payment transactions conducted through various payment systems over the past five calendar years, up to CY-2024.

Key Findings:

• Digital Payment Transactions: In 2013, there were 222 crore digital transactions worth Rs 772 lakh crore. By CY-2024, the volume has increased 94 times, and the value has grown more than 3.5 times.
• Unified Payments Interface (UPI): UPI transactions have seen a compound annual growth rate (CAGR) of 74.03% in volume, and 68.14% in value over the last five years.
• Credit and Debit Cards: The number of credit cards has more than doubled in the last five years, while the number of debit cards has remained relatively stable during the same period.
• Global Trends: India has joined Project Nexus, a multilateral initiative linking the fast payment systems (FPS) of four ASEAN countries—Malaysia, Philippines, Singapore, and Thailand—with India. Project Nexus, conceived by the Bank for International Settlements (BIS), enables instant cross-border retail payments by connecting domestic FPSs.

Payment Systems in India
Payment systems are frameworks established to facilitate the clearing and settlement of monetary and other financial transactions.

Regulation of Payment Systems in India

• Payments and Settlement Systems Act, 2007 (PSS Act): This Act authorizes the RBI to regulate and supervise payment systems in India, giving it the authority to issue licenses and authorizations to payment system operators, such as Clearing Corporation of India Ltd, NPCI, card payment networks, ATM networks, etc.
• Board for Regulation and Supervision of Payment and Settlement Systems (BPSS): The BPSS is the highest policy-making body on payment systems, established by the RBI under the PSS Act. The RBI Governor serves as its chairman, while the Deputy Governor in charge of the Department of Payment and Settlement Systems (DPSS) is the Vice-Chairperson.

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