CATEGORIESCategories

Ratan P Watal Committee on Digital Payments submitted report to Government

Dec 29, 2016 12:34 IST

The Committee on Digital Payments headed by Ratan P Watal in December 2016 submitted its report to the Union Ministry of Finance.

CA eBook

The committee was formed by the Union Government to suggest measures for increasing digital financial transactions across the country. Accordingly, it has suggested the following recommendations in its report.

• Make regulation of payments independent from the purview of the Reserve Bank of India (RBI).

• Update the current Payments and Settlement Systems Act, 2007.

• Promote digital payments and receipts within Government.

• Create a fund proposed as DIPAYAN from savings generated from cash-less transactions.

Positive impacts of demonetisation we must know

• Create a ranking and reward framework to encourage and recognise government agencies who lead the efforts on enabling digital payments.

• Consider outsourcing the operations of payment systems like Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT).

• Upgrade payment systems like RTGS and NEFT to operate on a 24x7 basis in the due course of time.

• Allow non-bank payment service providers (PSPs) to directly access payment systems.

• National Payments Corporation of India (NPCI) should be made payments centric in its ownership and objectives.

• Enable payments to be inter-operable between bank and non-banks as well as within non-banks.

• Create a formal mechanism to enable innovations and new business models.

• Implement other measures to promote digital payments.

In addition to the above recommendations, the committee also suggested other measures to promote digital payments including

• Promoting Aadhaar based eKYC and paperless authentication

• Providing disincentives for usage of cash

• Creating awareness and transparency on cost of cash

Union Government launched Lucky Grahak Yojana

Background

• The committee to review the framework related to digital payments was formed by the Union Government on 23 August 2016.

• The 11-member committee was headed by Ratan P Watal. He is a former finance secretary. At present, he is a principal advisor to the NITI Aayog.

• Among the other things, the committee was asked to review the Payment and Settlement System Act, 2007, the Reserve Bank of India Act, 1934 and Information Technology Act, 2000.

Is this article important for exams ? Yes12 People Agreed
Show Full Article

Post Comment

Register to get FREE updates

All Fields Mandatory
  • Please Select Your Interest
  • By clicking on Submit button, you agree to our terms of use
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

Newsletter Signup

Copyright 2017 Jagran Prakashan Limited.