BENGALURU: In an effort to provide secure and affordable electronic payments, the Reserve Bank of India (RBI) has developed a “Payments Vision 2025” document. As part of its Vision 2025, the RBI will seek to regulate big tech and fintech in the payments space, explore guidelines on payments involving BNPL (buy now, pay later) services and work to introduction of CBDC (Central Bank Digital Currency) and seek inclusion of Rupee in Continuous Linked Settlement (CLS).
CLS offers protection for cross-currency settlement in 18 currencies. In releasing the document on Friday, the RBI said the CBDC had grown in popularity, with 86% of central banks around the world reviewing its feasibility for cross-border transactions as well as internal benefits.
“Various use cases will be studied and explored to improve the efficiency of domestic and cross-border payment processing and settlement using the CBDC,” the RBI said. It will also support global outreach initiatives to expand the footprint of national payment systems.
As large corporations and fintech companies onboard new users, the central bank is also trying to regulate these companies in the payments space. Earlier at an event, RBI Governor Shaktikanta Das said big tech companies that have engaged in the provision of financial services could potentially be another source of disruption to the financial system.
“The provision of financial services through digital channels, including loans through online platforms and mobile applications, has led to issues related to unfair practices, data privacy, documentation, transparency, conduct, violation of license terms, etc.,” he said.