Payment Systems Report

Context:

Payment System Report, December 2024 released.

Payment System Report:

• Released by – Reserve Bank of India
• Bi-Annual report that analyses trends in payment transactions over the last 5 calendar years

Key Findings:

• Digital Payment Transactions: Increased from 222 crore transactions valued at Rs 772 lakh crore in 2013 to 94 times in volume and more than 3.5 times in value by CY-2024.
• Unified Payment Interface (UPI): Volume of UPI transactions shows a CAGR of 74.03%, and the value of transactions shows a CAGR of 68.14% over the last 5 years.
• Credit Cards & Debit Cards: Number of credit cards has more than doubled in five years, while debit cards have remained relatively stable.
• Global Trends: India joined Project Nexus, linking fast payment systems (FPS) of 4 ASEAN Nations (Malaysia, Philippines, Singapore, and Thailand) and India.
  • Project Nexus – Conceptualized by the Bank for International Settlements (BIS); Enables instant cross-border retail payments by interlinking domestic fast payment systems

Payment Systems in India:

• Mechanisms established to facilitate the clearing and settlement of monetary and other financial transactions.
• Regulation –
  • Payments and Settlement Systems Act, 2007 (PSS Act): Authorizes RBI to regulate and supervise payment systems in India.
    • Also empowers RBI to issue licenses/authorizations to payment system operators such as Clearing Corporation of India Ltd, NPCI, card payment networks, ATM networks, etc.
  • Board for Regulation and Supervision of Payment and Settlement Systems (BPSS): The highest policy-making body on payment systems established by RBI under the PSS Act.
    • The chairman is the RBI Governor, and the Deputy Governor in charge of the DPSS is the Vice-Chairperson.

Source: BS

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Previous Year Question

With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?
1. It is an organ of NITI Aayog.
2. It has a corpus of Rs. 4, 00,000 crore at present.
Select the correct answer using the code given below:

[UPSC Civil Services Exam – 2017 Prelims]

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (d)

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