Millennium Post (Kolkata)

Interopera­ble system for Internet banking to go live in 2024: RBI Guv

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Reserve Bank Governor Shaktikant­a Das on Monday said an interopera­ble system for Internet banking will be launched in 2024.

At present, internet banking transactio­ns are processed through payment aggregator­s (PA), and there is no interopera­bility, Das said while speaking at the launch of Digital Payments Awareness Week for 2024. A bank is required to separately integrate with each PA of different online merchants, he added.

An arrangemen­t between a customer’s bank and a specific PA is necessary, failing which payment cannot be made to a merchant, Das said, describing the potential difficulti­es which the current system entails.

“Given the multiple number of payment aggregator­s, it is difficult for each bank to integrate with each PA. Further, due to the lack of a payment system and a set of rules for these transactio­ns, there are delays in actual receipt of payments by merchants and settlement risks,” he said.

The central has given approval for implementi­ng an interopera­ble system to NPCI Bharat BillPay (NBBL), Das said. “We expect the launch of this interopera­ble payment system for Internet banking during

the current calendar year. The new system will facilitate quicker settlement of funds for merchants,” the governor noted.

The new system will be more efficient, convenient and also potentiall­y less costly for the stakeholde­rs, an official explained. Das said Internet banking is one of the oldest modes for online merchant payment transactio­ns and added that such a facility of interopera­bility was part of the RBI’s payments vision for 2025.

He called it a “preferred channel” through which payments like income tax, insurance premiums, mutual fund payments, e-commerce, etc are undertaken. An official said even after the huge success of the 2016-launched UPI, internet banking continues to account for over 10 per cent of overall transactio­ns.

 ?? ?? Reserve Bank Governor Shaktikant­a Das
Reserve Bank Governor Shaktikant­a Das

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