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RBI Approves Interoperable Net Banking Payments for Merchants

Santhosh Kumar 06/03/2024

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RBI Approves Interoperable Net Banking Payments for Merchants mind map
Recent News
RBI Governor approves
NPCI collaboration
Bharat BillPay Ltd (NBBL)
When
Announcement date
March 4, 2024
Why
Streamline merchant settlements
Reduce Merchant Discount Rate (MDR)
What
Creation of an interoperable system
Quicker settlements
Direct merchant payments
Impact
Facilitates online banking settlement
Where
Platform implementation
India-wide
Who
Reserve Bank of India (RBI)
Governor Shaktikanta Das
National Payments Corporation of India (NPCI)
Bharat Bill Payment System (BBPS)
How
Process before implementation
Customer's bank
Merchant's bank
Payment aggregators
New system operation
Direct account dealings
Faster transaction settlements
Significance
Enhanced efficiency in payments
Potential reduction in costs for merchants
Challenges
Implementation hurdles
Technological integration
Compliance with existing infrastructure
Way Forward
Comprehensive rollout plan
Technical support
Awareness campaigns for merchants

The RBI has sanctioned the development of an interoperable net banking payment system by the NPCI in collaboration with Bharat BillPay Ltd (NBBL). This system aims to facilitate quicker settlements and direct payments for merchants, potentially reducing the Merchant Discount Rate (MDR). By allowing for direct dealings between accounts through a new platform, it seeks to streamline the payment process, thereby enhancing efficiency and reducing costs for merchants.