RBI’s ‘Beyond the Rupee’ explores India’s digital payments journey, financial inclusion, innovation, and the rise of the e-rupee
(OdishaPlus Business)
The Reserve Bank of India (RBI) recently provided insights into its role in the evolution of India’s digital payment landscape through a video titled “Beyond the Rupee.”
This installment from the “RBI UNLOCKED” series examines the central bank’s initiatives concerning financial inclusion, innovation, and their impact. The video illustrates how technology has been utilized to expand access to banking services, influencing transaction methods across India.
The film commences by highlighting the practical differences between cash and digital payments in contemporary economies. It notes India’s position in the global digital payments sector, citing transaction volumes and speeds. The narrative attributes these developments to the RBI’s policies and its focus on employing technology to extend banking services.
A significant portion of the video addresses financial inclusion. It details the RBI’s efforts to ensure broader access to banking accounts, which it considers a fundamental right for citizens. The introduction of Business Correspondents (BCs) is presented as a strategy to reach underserved areas, with technology supporting these intermediaries in building trust and facilitating transactions. The use of handheld devices and voice-based receipts is depicted as a practical application of this approach.
The video further explores the progression of India’s payment systems, from traditional checks to modern digital platforms. It traces the adoption of technologies such as Magnetic Ink Character Recognition (MICR) for check clearing, and the subsequent implementation of Electronic Clearing Service (ECS), Real-Time Gross Settlement (RTGS), and National Electronic Funds Transfer (NEFT).
The establishment of the National Payments Corporation of India (NPCI) and the subsequent development of Unified Payments Interface (UPI) are presented as key milestones in this trajectory.
The film also looks to the future, introducing the Central Bank Digital Currency (CBDC), or e-rupee, as an upcoming development in monetary systems.
Additionally, the video touches upon the operational challenges encountered by the RBI, including its response to the COVID-19 pandemic.It mentions the creation of a “bio-bubble” to sustain critical financial operations during a national lockdown, underscoring the institution’s efforts to maintain financial stability.
“Beyond the Rupee” offers an informative look at the operations of the central bank. It explains aspects of central banking and portrays the RBI as an institution engaged in various initiatives to shape India’s financial environment.
You can watch the full video here: https://youtu.be/JLoGaZAETvo?si=DYeMJFkxRNrU-Y9J