New Delhi: The RBI’s chief Shaktikanta Das On Monday, announced a new way to pay online faster and easier will be launched in 2024. This will help online sellers get their money quicker.
Many people use Internet banking to pay for things online, such as taxes, insurance, mutual funds, and shopping. Internet banking is when you use your bank account to transfer money online. But there is a problem. When you pay online, you often have to go through a Payment Aggregator (PA). A PA is a company that connects your bank with the online seller. There are many PAs in India, and each one works differently. This means that your bank has to connect with each PA separately. This makes the process slow and complicated. Sometimes, there are delays or errors in the payment. This isn’t good for both you and the online seller.
The RBI wants to solve this problem. It has a plan to make internet banking interoperable. Interoperable means that different systems can work together smoothly and easily. The RBI has permitted a company called NPCI Bharat BillPay Ltd (NBBL) to create an interoperable system for Internet banking. NBBL is a subsidiary of NPCI, a non-profit organization that runs many payment systems in India.
The new system will be launched in 2024. It will make internet banking faster and easier. You can pay any online seller with any PA using your bank account. The online seller will get their money quicker and with less risk. Das said that this will make people more confident and happy to use digital payments. He said that the RBI is committed to supporting India’s progress in digital payments. He also praised the success of UPI, which is another payment system run by NPCI. UPI stands for Unified Payments Interface. It is a system that lets you send and receive money instantly using your mobile phone. You can use UPI to pay anyone, anywhere, anytime, with just a few clicks.
UPI is very popular in India and around the world. It accounts for almost 80 percent of all digital payments in India. The number of UPI transactions has grown from 43 crore in 2017 to 11,761 crore in 2023.
