Interoperable Payment System: To make faster transactions possible in digital payment system, Interoperable Payment System has been approved. This system will be implemented this year.
Interoperable Payment System: A big change is about to come in Internet banking. Reserve Bank of India (RBI) has approved to introduce Interoperable Payment System in Internet Banking. RBI Governor Shaktikanta Das said on Monday that IPS for internet banking will be implemented this year. He said that we have given approval to NPCI Bharat Bill Pay Limited (NBBL) to implement the interoperable system.
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, fund settlements of merchants can be done faster. At present, 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 lack of common payment system in the country and lack of rules for such transactions, merchants face delay in payment receipt. Shaktikanta Das said that due to interoperable payment system, the risk of settlement can also be reduced.
IIFL Finance banned from distributing gold loans
Earlier on Monday itself, RBI has 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 action of RBI in a month after Paytm Payments Bank.
