Committee is Constituted to review the payment system and framework related to digital payments
File No 1/6/2016 CY-II
Government of India
Ministry of Finance
Department of Economic Affairs
Currency & Coinage Division
North Block, New Delhi,
Dated 23rd August, 2016
Subject: Constitution of a Committee to review the framework related to digital payments
In compliance to the decision taken by the Cabinet in its meeting held on 24.2.2016, a Committee is constituted to review the payments system in the country and to recommend appropriate measures for encouraging digital payments.
- The Terms of Reference of the Committee shall include:
To study and recommend need for charges, if any, in the regulatory mechanism under the Payments and Settlement System (PSS) Act, 2007, RBI Act, 1934, Banking Regulation Act, 1949, Information Technology Act, 2000, Telecom Regulatory Authority of India Act, 1997, Prevention of Money Laundering Act, Income Tax Act, 1961 and any other legislation, relevant for the purpose of promotion of payments by digital modes;
ii. To study and recommend ways for leveraging Unique Identification Number or any other proof of identity for authentication of card/ digital transactions and setting up to of a Centralised KYC Registry;
iii. To study introduction of single window system of Payment Gateway to accept all types of Cards/ Digital Payments of Government receipts and enable settlements between consumer and merchants via NPCI or other agencies within specified timelines and to study the scope of integration of all the Government systems like Public Finance Management System (PFMS), PayGov, Bharatkosh, eKuber;
iv. To study feasibility and framing rules for creating a payments history of all card digital payments and ensure that merchants/ consumers can leverage their credit history to access instant, low-cost micro-credit through digital means and create necessary linkage between payments transaction history and credit information;
v. To study and recommend various measures to incentivize transactions through cards and digital means, e.g., through tax rebates/ incentives, introduction o1 cash back/ lottery etc;
vi. To study global best practices in payments including initiatives taken by various Governments/ Government Agencies;
vii. To identify market failure (s), if any, along with suitable interventions that may be implemented to promote payment by card/ digital means;
viii. To identify regulatory bottlenecks, if any, and suggest changes to promote payment by card/ digital means;
ix. To study and make recommendations on any other matter related to promotion of payments through Cards and Digital Means.
3. The Composition of the Committee is as follows:
- Shri Ratan P. Watal, Pr. Advisor, NITI Ayog and – Chairman Former Finance Secretary
- Shri H. R. Khan, Former Deputy Governor, Reserve – Member Bank of India
- Secretary, D/o Investment and Public Asset – Member Management or his Nominee (Not below the rank of Joint Secretary)
- President, NASSCOM (At present Shri R. – Member Chandrashekhar)
- Chairman, Indian Banks association (At present Shri – Member Ashwani Kumar, CMD, Dena Bank)
- Chairman,Payments Council of India (At present Shri – Member Naveen Surya, MD, Itz Cash)
- President, Internet and Mobile Association of India – Member (At present Dr. Shubho Ray)
- Chairman, CBDT (At present Ms. Rani Singh Nair) – Member
- Director General, UIDAI (At present Dr. A. B. P. – Member Pandey)
- Executive Director, Reserve Bank of India – Member
- Joint Secretary, D/o Economic Affairs – Member
- The Chairperson may co-opt any such additional person(s) as invitees as necessary for any other meeting(s) of the Committee.
- The Committee would meet as frequently as necessary for fulfillment of its objectives .
- The NIPFP-DEA program team will be the secretariat for the Committee and all expenses related to the Committee’s activities would be met from the budget of the NIPFP-DEA program supplemented as and when necessary.
- The Committee shall submit its report within one year from the date of its constitution.
- This issues with the approval of Competent Authority.
(Dr. Anil ranga)
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