NITI Aayog Panel Says Digital Payments Can Be Boosted With a Level Playing Field

A NITI Aayog panel, set up to review the framework related to digital payments, on Friday called for promoting electronic modes by providing level playing field to all stakeholders including new players.

It has recommended a medium term strategy for accelerating growth of digital payments in the country with a regulatory regime that is conducive to bridging the digital divide by promoting competition, open access and interoperability in payments, said a NITI Aayog release.

(Also see:  Aadhar-Enabled Payment System to Be Rolled Out Shortly)

Headed by former finance secretary Ratan P Watal, who is presently Principal Advisor, NITI Aayog, the panel has called for "inclusion of financially and socially excluded groups and assimilation of emerging technologies in the market while safeguarding security of Digital Transactions and providing level playing to all stakeholders and new players who will enter this new transaction space".

It has also suggested "interoperability of the payments system between banks and non-banks, up-gradation of the digital payment infrastructure and institutions and a framework to reward innovations and for leading efforts in enabling digital payments".

According to the release, the Committee was seized of the fast developments following the decision of the government to demonetise currency of high denominations.

It added that the Committee has calibrated its recommendations accordingly and has provided a suitable framework for smooth and speedy transition towards a Digital Payments Economy.

The panel was constituted on August 23, 2016 and had submitted its final report to Finance Minister Arun Jaitley on Friday.