RBI May Launch Interoperable Payment System For Internet Banking In 2024

Geeta Kumar
2 Min Read

A big change is about to come in Internet banking. Reserve Bank of India (RBI) has approved the introduction of an interoperable payment system in Internet banking. On Monday, RBI Governor Shaktikanta Das said IPS for internet banking will be implemented this year. He said we have approved NPCI Bharat Bill Pay Limited (NBBL) to implement the interoperable system.

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Merchants’ Fund Settlements Can Be Done Faster

Governor Shaktikanta Das said that interoperability for digital payment systems in Internet banking will be implemented only in the year 2024. This will make it much easier for the merchants. With the introduction of this system, merchants’ fund settlements can be done faster.

At present, the processing of Internet Banking transactions is done through Payment Aggregators (PA). It does not have the facility of interoperability. Due to this, the bank has to integrate with the payment aggregators of different online merchants separately.

Difficulty In Integrating With Payment Aggregator

The RBI Governor said that, at present, banking transactions done through payment aggregators are not interoperable. There are many payment aggregators in the country. Hence, every bank faces difficulty in integrating with every payment aggregator. Due to the lack of a common payment system in the country and the lack of rules for such transactions, merchants face delays in payment receipt. Shaktikanta Das said that due to an interoperable payment system, the settlement risk can also be reduced.

IIFL Finance Banned From Distributing Gold Loans

Earlier on Monday itself, RBI banned IIFL Finance from distributing gold loans. The central bank has taken this action due to material supervisory concerns. However, the company will continue to service its existing gold loan portfolio. RBI said that if satisfactory results come after the special audit, then relief can be given to IIFL Finance. This is the second major RBI action a month after Paytm Payments Bank.

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By Geeta Kumar Journalist and Digital Marketing Expert
Geeta is responsible for creating video content for News Waker's website and social media channels. She also covers breaking news and events, and is skilled at capturing essential moments on camera.