Recommendations of Nandan Nilekani Committee to encourage digital paymentsDate: 04 June 2019 Tags: Banking Committees
The Nandan Nilekani committee on Digital Payments has suggested host of measures to encourage digital payments including elimination of charges, round clock RTGS and NEFT facility and duty-free import of point-of-sales machines.
The five-member committed on deepening digital payments headed by Nandan Nilekani was constituted by Reserve Bank of India (RBI) in January 2019. It was mandated to give suggestions for encouraging digitization of payments and enhance financial inclusion through digitization. The committee submitted its report in May 2019.
- Elimination of all charges for round the clock (24×7) RTGS (real time gross settlement) and NEFT (national electronic funds transfer) facility and duty-free import of point-of-sales (POS) machines.
- Internationalization plan for Indian payment systems like RuPay and BHIM (Bharat Interface for Money) UPI (Unified Payment Interface applications) should be formulated to ease flow of remittances into India and also to help Indian travellers make payments abroad.
- Elimination of current import duty of 18% on POS machines to zero for a period of three years to facilitate adequate expansion of acquiring infrastructure in the country.
- Regulator intervention at regular intervals to fine tune interchange fee to ensure there is level playing field in market both for issuer and acquirer.
- Enhancing features of ATMs from cash dispenser to act as complete Digital facilitation point to support other banking facilities including bills payment, fund transfer mobile recharge, cash deposit customer support and grievances reporting etc.
- Customers must be allowed to initiate and accept reasonable number of digital payment transactions without levying any charges. Besides, they should be not charged convenience fee on payments made to government agencies by customers.