Committee for Review of Framework for Cards/ Digital Payments: FinMin Order

Constitution of a Committee by FinMin/ GOI to Review the Indian Framework related to Cards/ Digital Payments or E Payments

The MoF has constituted a Committee to review the payments system in the country and to recommend appropriate measures for encouraging digital payments/ e payments. The Terms of Reference of the Committee are as under:

i) To study and recommend need for changes, if any, in the regulatory mechanism under the Payments and Settlement System (PSS) Act, 2007, RBI Act 1934, Banking Regulation Act, 1949, Information Technology Act, 2000, Telecom Regulatory Authority of India Act, 1997, Prevention of Money Laundering Act. Income Tax Act, 1961 and any other legislation, relevant for the purpose of promotion of payments by digital modes;

ii) To study and recommend ways for leveraging Unique Identification Number or any other proof of Identity for authentication of card/ digital transactions and setting up to of a Centralised KYC Registry;

iii) To study introduction of single window system of Payment Gateway to accept all types of cards/ digital payments of Government receipts and enable settlement between consumer and merchants via NPCI or other agencies within specified timelines and to study the scope of integration of all the Government Systems like Public Finance Management System (PFMS), PayGov, Bharatkosh, e-Kuber;

iv) To study feasibility and framing rules for creating a payments history of all card/ digital payments and ensure that merchants/ consumers can leverage their credit history to access Instant, low-cost micro-credit through digital means and create necessary linkage between payments transaction history and credit information.

v) To study and recommend various measures to incentivize transactions through cards and digital means, e.g.. through tax rebates/ incentives, introduction of cash back, lottery etc;

vi) To study global best practices in payments including initiatives taken by various Governments, Government Agencies;

vii) To identify market failure(s), if any, along with suitable interventions that may be implemented to promote payment by cards & digital means:

viii) To identify regulatory bottlenecks, if any, and suggest changes to promote payment by card/ digital means;

ix) To study and make recommendations on any other matter related to promotion of payments through Cards and Digital Means.

Report of the Committee has to be submitted within one year from the date of Constitution. For composition of the Committee and other details of the FinMin Order, please view/ download the pdf copy at the link below:

FinMin Order dt. 23 Aug. 2016 Constitution of Committee for Digital Payments

Tags:,

Leave a Reply