Speaking at an FICCI-IBA summit on Thursday, Reserve Bank of India deputy governor H.R. Khan provided a “bird’s eye-view” of the current payment system landscape in India.
“The basic underlying current that runs through this changing landscape is the ever increasing reliance on technology to cater to the needs of customers and process vast number of transactions including payment transactions,” Khan said, according to IndiaInfoline.com.
In India, cash remains the predominant payment method yet India’s Reserve Bank has undergone enormous efforts to promote cashless payments in the country.
"The technology implementation in banks which have shaped the payment system in turn is largely driven by the recommendations of the various committees set up by RBI," Khan said, according to Inewsone.com.
Credit and debit cards are one of the fastest growing segments in India with 18 million outstanding credit cards and 228 million debit cards in India.
“Even if I look back over the last couple of decades, I would commend the progress made by the industry collectively in building a modern payment system in the country," Kahn said, according to Indianfonline.com. “The payment system today is vibrant, robust and technologically superior with multiple payment instruments, multiple access points and delivery channels to choose from. However, the benefit of modern payment system is yet to fully percolate to all segments of the society. As a result, a substantial portion of the population is still outside of the realm of the formal and modern payment system.
India has also seen a move to Smart card shipments, including contact-less payment cards, EMV and non-EMV payment cards.
SBI Cards, a joint venture between State Bank of India and GE Capital, will migrate to the EMV platform for the majority of its new customers and cards, making it the first credit card company in India to make the switch.
The push for smart cards is even greater in developing countries due to the enhanced security and widespread adoption.