【Payment Encyclopedia】Indian Payment System www.deekpay.com

## Payment systems in India: from traditional to digital, the road to fintech innovation In recent years, India's payment system has undergone a sea change, transitioning from traditional paper-based payment methods to digitalisation, which has not only improved payment efficiency, but also injected new vitality into the fintech industry. I. Institutional safeguards to build the cornerstone of the payment system As an important participant in the global economy, the Indian government attaches great importance to the construction of the payment system, has formulated comprehensive laws and regulations, and has built a multi-level regulatory system. Legal safeguards: The Payment and Settlement Systems Act, enacted in 2007, and the Payment and Settlement Systems Regulations, 2008, formulated thereunder, provide a legal framework for the operation of the payment system and give the Reserve Bank of India (RBI) regulatory powers to ensure the safety, stability and reliability of the payment system. Regulatory Authority: The Board of Payment and Settlement Systems Regulation (BPSS), a sub-committee of the Central Board of the Reserve Bank of India, is responsible for taking the highest decisions on the payment and settlement systems, formulating policies and standards, and overseeing the operations of all payment and settlement systems. The Department of Payment and Settlement Systems (DPSS) of the Reserve Bank of India is responsible for implementing the directives of the BPSS and ensuring the safe and efficient functioning of the payment system. Diversified Operations: The Reserve Bank of India has authorised various types of payment system operators, including financial market infrastructures, retail payment organisations, card payment networks, cross-border remittance entities, automated teller machine (ATM) networks, etc., to build a wide-ranging and diversified payment system ecosystem. Payment system development and accelerated digital transformation India's payment system has gradually transformed from the traditional paper-based payment method to digitalisation, and a variety of advanced payment systems have been developed to meet the needs of different payment scenarios. Digital payment: The National Automated Clearing House (NACH), as a national electronic clearing system, integrates multiple electronic clearing service systems to achieve efficient centralised clearing of funds. The application of Prepaid Payment Instrument (PPI) provides users with convenient payment methods and promotes the popularity of mobile payment. The Real Time Gross Settlement (RTGS) system provides a secure and efficient solution for large scale fund transfers. Other Payment Systems/Services: The Clearing Corporation of India Limited (CCIL), as an industry service organisation, is responsible for clearing and settling transactions in the money market, government securities and foreign exchange market, providing an efficient transaction settlement platform for the financial markets. Future Prospects: Technology Enabled, Payment System Upgraded Again With the continuous development of technology, India's payment system will develop in the direction of more intelligent and convenient, and the future will show the following trends: Deep integration of financial technology: the application of artificial intelligence, blockchain, big data and other technologies will further enhance the efficiency and security of the payment system. Inclusive financial development: the popularity of digital payment will provide more people with convenient and safe financial services and promote the development of financial inclusion. Acceleration of cross-border payment: with the continuous development of cross-border payment technology, trade and investment between India and the rest of the world will be more convenient. As the wave of digitisation sweeps across the globe, India's payment system is actively embracing the changes and continuously improving the payment system through innovative technologies, injecting new vitality into the country's economic development. In the future, India's payment system will certainly usher in a brighter development prospect. PS. BPSS: Board of Payment and Settlement Systems Regulation DPSS: Department of Payment and Settlement Systems, RBI NACH: National Automated Clearing House PPI: Prepaid Payment Instrument RTGS: Real Time Gross Settlement CCIL: Clearing Corporation of India Limited Attention: The article has been restructured to avoid similarities and to add a look at future trends. The article uses more concise and attractive language, and adds some more Chinese characteristics of the description. Some keywords have been added in the article to facilitate search engine crawling.