The Reserve Bank of India (RBI) in its Monetary Policy Committee (MPC) meeting on April 7, 2021 not only decided to hold the essential policy prices unchanged, but also produced some choices to make on the web payments via NEFT, RTGS, mobile wallets, UPI and other digital modes more handy.
So, to transfer revenue, you may well not go to your bank branch or login to your Net Banking account as the RBI enables the National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) connectivity with non-bank payment technique operators, facilitating UPI interoperability and broadening the digital payment landscape in India.
“The extension of NEFT and RTGS facilities to digital payments intermediaries is a pragmatic move in changing the fintech landscape of India and will be very beneficial for the customers. It will help in further penetration of digital payments as users from Tier 1, 2, 3, 4 cities will have curated services available on their fingertips which was earlier available only via banks. This will also offer them the convenience of using their favorite fintech apps to make NEFT/RTGS transactions with ease. Also, it will give rise to a smoother user experience since fintechs are more tech-driven and innovative than traditional banks. They are more likely to develop tailored products and services for their consumers. Overall, it will prove to be a transformative step that will help create a user-friendly ecosystem with wide-ranging innovations at the heart of it,” stated Zafar Imam, CEO, Finshell.
Inclusion of non-bank players would also decrease the dependency on banks and make life less difficult for the consumers.
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“Augmenting non-bank players by bringing RTGS and NEFT to their existing portfolios is a credible move that will help them drive more customer traction and recover from last year’s losses in the wake of COVID-19. Earlier, customers had to rely on banks for these services, but with this initiative, they can use it on other platforms as well. Not only will it help digital players ramp up sales and revenues, but it will also provide them with a new opportunity to transform customer experience and serve them more seamlessly. After the phenomenal success of UPI transactions, this is a welcome move to include more users across wider payment ranges,” stated Ankur Maheshwari Chief Financial Officer, MoneyTap.