Along with the possibility of imposing tiered charges on transactions done via the Unified Payments Interface, the Reserve Bank of India is seeking feedback from the public on the various changes proposed in the payments system. The Central bank has released a discussion paper on Charges in Payment Systems for public feedback, as revealed in the statement on Developmental and Regulatory Policies.
The discussion paper was released on 17th August. Feedback may be provided in respect of questions raised therein, including other relevant suggestions, through email on or before October 3, 2022. The focus of RBI’s policies in the payment systems has been to ease frictions that may arise from systemic, procedural, or revenue issues.
Consumer complaints are generally about high and non-transparent charges, while there are many intermediaries in the payments transaction chain. While providing an optimal revenue stream for the intermediaries, charges for payment services should be appropriate and sportively determined for users. It was recognized as useful to hold comprehensive feedback on the various charges levied in the payment systems by underlining various dimensions and seeking stakeholder feedback, to ensure the balance.
The discussion paper noted by RBI reads, “According to the feedback received, RBI would put efforts to structure its initiatives and streamline the framework of charges for different payment services or activities in the country. At this stage, it is repeated that RBI has neither taken any view nor has any particular opinion on the issues raised in this discussion paper.”