The Reserve Bank of India (RBI) has stopped the new digital payment plan (payment option). Keeping in mind the cyber threat and security of data, the Reserve Bank has taken this decision.
Two people associated with the matter said that the RBI feels that the issue of data security from foreign entities is a major concern. Therefore, the Reserve Bank has not yet decided to go ahead with the new license.
It is noteworthy that RBI had invited EoI for the new payment network last year. At least six consortiums, led by Amazon, Google, Facebook and the Tata Group, had applied for new umbrella entities licenses in partnership with companies such as Reliance and ICICI Bank. According to the information, the finance ministry had barred state-run banks like SBI and Union Bank from taking license as they were stake holders in NPCI. Bank unions criticized this decision of RBI. Private banks were barred from taking licenses, which they were also not happy with. All India State Bank of India Staff Federation and UNI Global Union had urged the RBI to do away with the licensing process and focus on strengthening NPCI.
88% jump in digital payments
Let us inform that in the financial year 2020-21, there has been an increase of 88 percent in digital payments. It has increased from 23 billion to 43.7 billion. There is a rapid growth in the digital payment system. Therefore, many new companies entered this sector, due to which there has been a boom in digital transactions.
It is worth noting that last month RBI had banned the issuance of MasterCard. Now banks will not be able to issue Master Debit and Credit cards to new or old customers. MasterCard is a payment system operator authorized to operate a card network in the country under the PSS Act.
