INDIA CENBANK EXPECTS TO LAUNCH INTEROPERABLE PAYMENT SYSTEM FOR BANKING IN 2024
India's central bank is gearing up to introduce interoperability of digital payment systems for internet banking in 2024, aiming to streamline fund settlements for merchants, according to Governor Shaktikanta Das. The initiative is expected to enhance efficiency and accelerate transaction processing. Approval has been granted for the implementation of this interoperable system to NPCI Bharat BillPay Ltd (NBBL), and the launch is anticipated within the current calendar year. Currently, internet banking transactions facilitated through Payment Aggregators (PAs) lack interoperability, necessitating separate integration between banks and various PAs representing different online merchants.
The absence of a common payment system and standardized rules for these transactions has resulted in delays in payment receipt by merchants and heightened settlement risks. The forthcoming interoperable payment system seeks to address these challenges, promoting smoother and more secure digital transactions within the internet banking ecosystem.
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