Chapter 7

Payment Neutral Regulation

The Government of India must work to ensure that regulation and payments infrastructure promote Universal Access to drive a free and open electronic payments market.

To enable consumer choice and competition, platforms such as Unified Payment Interface (UPI), Bharat Interface for Money (BHIM), Aadhaar Enabled Payment System (AEPS), and Bharat Bill Payment System (BBPS) should allow Universal Access to all stakeholders.

Separate NPCI from its associated Products and Services

Separate NPCI being the operator of its own products and platforms (RuPay, UPI, BHIM, AEBS, BBPS):  It is an inherent conflict to have a market competitor that also acts as a quasi-regulator. The objectivity of NPCI regulation is an imperative that cannot be achieved without clear separation of its ownership and interest in its products and platforms. Watal Committee has called for this important reform.

Independent Digital Payments Board

To coalesce a comprehensive payment strategy, the Government of India must create an autonomous Digital Payment Board to help drive the digital agenda of PM Modi forward to serve an independent focal point for all major voices and contributors to electronic payments deployment in India. In the spirit of promoting Universal Access to Infrastructure and Open Payment Systems, this board should include both private and public sector stakeholders as well as consumers and business groups like CAIT and ADB. The board should make recommendations that advance payment neutral options for policy, regulation and participation.

Unleash the Power of Markets and Competition

Banks, payment platforms and networks will compete to grow acceptance. This means more technology and innovation, cost competition and more options for merchants, traders and consumers to address their specific needs. Universal Access to Infrastructure and Open Payment Systems are fundamentally about more choices and competition. Allowing market forces to shape payments will benefit everyone.

Together we can build the best electronic payments system for a Less-Cash India.