RBI’s Payment and Settlement Vision: D E L I V E R I N G

2019-2021 R E S U L T
R E L I A B
S ,
I L I T Y
& D E P E N D A B I L I T Y
What Should Banks Do?
By: Pushpinder Singh
Cooperative Banks Have a Stronger Financial Position

The number of UCBs have come down,

The remaining UCBs have seen a large increase in their asset base which speaks to their stronger
financial position
What Is RBI’s 'Payment and Settlement Systems Vision 2021'?

“Empower every Indian with access to a

bouquet of e-payment options that are safe,
secure, convenient, quick and affordable.”

A highly digital and cash-lite society" through (4Cs).

Competition, Cost effectiveness, Convenience and Confidence

4 X increase in number of digital transactions in December 2021.

4 Cs : Goal Posts for Payment System Vision 2021
COMPETITION COST CONVENIENCE CONFIDENCE
1. Self-Regulatory Organization for all 1. Accessible, affordable and 1. Harmonizing TAT for resolution 1. Increased coverage of the
PSOs inclusive services of customer complaints) Cheque Truncation System
2. Encourage and facilitate innovation 2. Review of corridors and charges 2. Setting up a 24x7 helpline) 2. Increased scope and coverage
in an environment of collaborative for inbound cross border 3. Enhancing awareness of the Trade Receivables
competition . remittances 4. Conducting customer awareness Discounting System (TReDS)
3. Feature phone-based payment 3. Inter-operability and building survey 3. Geo-tagging of payment
services capability to process transactions 5. Internal ombudsman for digital system touch points
4. Off-line payment solutions of one system in another system payments 4. Contact-less payments and
5. USSD-based payment services 4. Acceptance infrastructure to 6. National settlement services for tokenization
6. Global outreach of payment address supply-side issues card schemes 5. Enhanced security of mobile-
systems 5. System capacity and scalability 7. Enhanced availability of retail based payments
7. Fostering innovation in a 6. Increasing LEI usage for large payment systems and a wide 6. Oversight for maintaining
responsible environment through value cross border payments bouquet of offerings integrity of payment systems
regulatory sandbox 7. Regulation of payment gateway 8. Widen scope/ use of domestic 7. Third party risk management
8. Review of membership to service providers and payment cards and system wide security
centralized payment systems aggregators 9. Explore adoption of newer 8. Framework for collection of
9. Inter-regulatory and intra-regulatory technologies including DLT for data on frauds in payment
co-ordination enhancement of digital payment systems
10.Benchmarking India’s Payment services 9. Framework for testing
10.E-mandates/ Standing resilience of payment systems
Instructions for payment
Source: RBI transactions
Deliver Options to Increase
.

NCMC Card
Feature phone-based Payment Services

50% increase in mobile-based payment transactions is expected

1. Feature phone-based payment services
2. USSD-based payment services
3. Off-line payment solutions

Technology is based on wafer-thin sticker attached to any

SIM card of a telecom provider that sources information
from a co-branded prepaid wallet linked to it.

Thin Sim Technology

Card Tokenization is the New Norm

1 2 4 5
When paying – either via The network consults its
The merchant passes The Merchant Acquirer
online purchase or tap-to-pay “Token Vault” to match the
the token along to their passes the token to the
– the token goes to the token with the customer’s
Merchant Acquirer Network
merchant account number

Customer Merchant Acquirer Network Token Vault

8 7 6
The authorization is passed to The Network passes along
The Bank verifies funds
the Network and proceeds the token and personal
and authorizes the
back to the Merchant Acquirer account number to the
transaction
and to the Merchant Bank

Bank
Reduce Financial Slippages through Siloed Reconciliation
ATM/POS/Internet
Banking/Ecommerce

CASH DEPOSITS

BANKS GL / PAYMENT GATEWAY

RETAIL ASSETS SECURITIES &
POSITIONS

INSURANCE DERIVATIVES

PAYROLL RECON CORPORATES CAPITAL MARKETS COMMODITIES

AUTORECON
CENTRAL BANKS
VISA

IRDAI
REGULATORS PROCESSORS MASTERCARD

SEBI
NOSTRO/ VOSTRO RUPAY

TRADE FINANCE
Fraud Risk Management is the key area of focus
Risk & Fraud
Management of risk rules
Electronic Risk calculation
Transactions
Management of automated processes Institution’s
Automated treatments and Authorization
Multi-channel Management of fraud cases
decision Server
Transaction Management of alerts Web Service
Any type of card Message TCP/IP
Reporting
Any technology historical transactions
Oppositions
Unpaid
Any transaction

International
International
Core Banking Networks
Cooperation anti fraud
Process consistent with VISA and SAFE | TC40 UnionPay
Mastercard recommendations Issuers at risk
Risk rules Frauds and cancellations Acquirers at risk
Holders and merchants Chargebacks retroactive
NCMC Cards will be an Opportunity

One Nation One Card

Source: NPCI
Rationalize Cost

• Deliver services in the hosted environment

• Convert CapEx into OpEx
Contact Us

For custom “Payments” solutions to requirements

Please contact:
Vivekanand Sangle Manohar Bhoi Rohit Ramachandran Priya Mangela
+91 8451053335 +918451053338 + 919920564145 +91 9136991852
Q&A

Q A
A
Thank You!