RBI’s Payments Vision 2028

The Reserve Bank of India has unveiled Payments Vision 2028 with the theme “Shaping India’s Payment Frontier”, outlining a roadmap up to December 2028 to strengthen India’s digital payments ecosystem.

The vision focuses on user empowerment, fraud prevention, cross-border efficiency, innovation, and ease of doing business, while consolidating India’s position as a global leader in digital payments.

Key Objectives & Focus Areas

  • Strengthen digital payment infrastructure through ~15 initiatives
  • Enhance user empowerment & transaction control
  • Improve fraud detection and cyber security
  • Boost cross-border payment efficiency
  • Support MSMEs and financial inclusion
  • Promote innovation and competition in payment systems
  • Build resilient, secure, and globally competitive ecosystem

Major Initiatives Under Payments Vision 2028

Switch On/Off Facility Expansion
  • Extend facility beyond cards to:
    • UPI
    • Wallets
    • Other digital platforms
  • Allows users to:
    • Enable/disable transactions
    • Control usage channels
  • Impact: Reduces cyber fraud and unauthorised transactions
Payments Switching Service (PaSS)
  • Centralised system for migration of payment instructions
  • Enables smooth switching between bank accounts

Features:

  • Central dashboard for recurring payments
  • Transfer of: Incoming payments and  Outgoing mandates

Use Case:

  • Bank mergers
  • Account changes
Shared Responsibility Framework
  • Fraud liability to be shared between:
    • Issuing bank
    • Beneficiary bank

Objective:

  • Improve coordination
  • Strengthen fraud detection
  • Reduce burden on customers
Strengthening MSME Ecosystem (TReDS)
  • Interoperability framework for Trade Receivables Discounting System (TReDS)
  • New features:
    • Factoring with recourse
    • Support for export receivables

Impact:

  • Better working capital access
  • Improved liquidity for MSMEs
Introduction of Electronic Cheques (e-Cheques)
  • Combines:
    • Reliability of paper cheques
    • Speed of digital payments

Features:

  • Standardised formats
  • Integration with digital systems
Cross-Border Payments Reform

Review of framework under:

  • Payment and Settlement Systems Act 2007
  • Foreign Exchange Management Act 1999

Focus:

  • Faster transactions
  • Simplified authorisation
  • Dedicated reporting mechanisms
Cyber Security & Risk Monitoring
  • Introduction of: Cyber Key Risk Indicators (KRI) for non-bank PSOs
  • Aim: Enhance cyber resilience and system integrity
Regulatory & Institutional Reforms
  • Bring critical digital payment entities under regulatory oversight
  • Explore Small Payment System Providers under perpetual sandbox
  • Promote research & training in digital payments
Domestic Legal Entity Identifier (DLEI)
  • Proposal for uniform identifier for non-individuals
  • Helps:
    • Track transactions
    • Manage financial risks
  • May replace multiple existing identifiers
Innovation in Card Ecosystem
  • Develop open & interoperable card network
  • Promote:
    • Competition
    • Tokenisation
    • Transparent pricing
  • Empower both cardholders and merchants

Key Features at a Glance

FeatureDescription
ThemeShaping India’s Payment Frontier
TimelineUp to December 2028
FocusSecurity, inclusion, innovation
Initiatives~15 targeted reforms
Core AreasFraud prevention, MSME support, cross-border efficiency
New SystemsPaSS, e-cheques, DLEI

Evolution of RBI Payment Vision (Phases)

Summary of Key Phases
PhasePeriodKey Developments
Foundational2001–2004RTGS launch, ECS expansion
Institutional2005–2008DPSS setup, PSS Act 2007, NPCI formation
Expansion2009–2012NEFT/RTGS growth
Inclusion2012–2015PPIs, BBPS, AEPS
Digital Push2016–2018UPI launch
Outcome-Based2019–2021Measurable targets
Globalisation20254Es framework
Current Vision2028Future-ready ecosystem
Purpose of Payments Vision Documents
  • Guide evolution of payment systems in India
  • Ensure:
    • Efficient settlement infrastructure
    • Regulatory oversight
    • Digital inclusion
    • Innovation enablement
  • Help India transition from: Cash-based to Digital economy

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