Payment Vision 2025

Table of Contents

Payment vision 2025 UPSC: Relevance

GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Recently, RBI has published Payment Vision 2025 to provide every user with safe, secure, fast, convenient, accessible and affordable e-payment options.

The Payments Vision 2025 has the core theme of ‘E-Payments for Everyone, Everywhere, Everytime’ (4Es).
Payments Vision 2025 has been prepared by considering the guidance from the Board for Regulation and Supervision of Payment and Settlement Systems of the RBI.
Payments Vision 2025 builds on the initiatives of Payments Vision 2019-21.
The Payments Vision 2025 document is presented across the five anchor goalposts of Integrity, Inclusion, Innovation, Institutionalisation and Internationalisation.

The Payments Vision 2025 promises to further elevate our payment systems towards a realm of empowering users with affordable payment options accessible anytime and anywhere with convenience.
It proposes enabling of geotagging of digital payment infrastructure and transactions and revisiting guidelines for prepaid payment instruments (PPIs), including closed system PPIs.
The document also proposes a framework for regulation of all significant intermediaries in payments ecosystem and linking credit cards and credit components of banking products to UPI.
The document also proposes to bring in enhancements to Cheque Truncation System (CTS), including One Nation One Grid clearing and settlement perspective, and creating payment system for processing online merchant payments using internet and mobile banking.
It also proposed regulation of BigTechs and FinTechs in the payments space.
It further recommends examining of BNPL (Book Now Pay Later) methods and exploration of appropriate guidelines on payments involving BNPL.

Buy now, pay later is a type of installment loan.
It divides purchases into multiple equal payments, with the first due at checkout.
The remaining payments are billed to the debit or credit cards until the purchase is paid in full.
BNPL services have developed into a new payment mode alongside the existing payment modes like cards, UPI, and net banking.

Volume of cheque-based payments to be less than 0.25% of the total retail payments;
More than 3x increase in number of digital payment transactions;
UPI to register average annualised growth of 50% and IMPS / NEFT at 20%;
Increase of payment transaction turnover vis-à-vis GDP to 8;
Increase in debit card transactions at PoS by 20%;
Debit card usage to surpass credit cards in terms of value;
Increase in PPI transactions by 150%;
Card acceptance infrastructure to increase to 250 lakh;
Increase of registered customer base for mobile based transactions by 50% CAGR; and
Reduction in Cash in Circulation (CIC) as a percentage of GDP.