App To Be Started To Access Retail Direct Portal: UPI For Cash Deposit To Be Enabled

CBDC-Retail will be made accessible by the RBI to a broader segment of users by enabling non-bank payment system operators to offer CBDC wallets

Shaktikanta Das, RBI Governor, addressed the Post Monetary Policy Press Conference with his team on April 05, 2024

FinTech BizNews Service   

Mumbai, April 5, 2024: The RBI Retail Direct Scheme was launched in November 2021. 

RBI Retail Direct Scheme - Introduction of Mobile App

“It is now proposed to launch a mobile app for accessing the Retail Direct portal. This will be of greater convenience to retail investors and deepen the G-sec market”, said RBI Governor Shaktikanta Das while announcing the MPC's decision on Friday. 

Enabling UPI for Cash Deposit Facility

Deposit of cash through Cash Deposit Machines (CDMs) is primarily being done through the use of debit cards. Shaktikanta Das further revealed that given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate deposit of cash in CDMs using UPI. This measure will further enhance customer convenience and make the currency handling process at banks more efficient.

UPI Access for Prepaid Payment Instruments (PPIs) through Third Party Apps

At present, UPI payments from Prepaid Payment Instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. Shaktikanta Das added that it is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets. This will further enhance customer convenience and boost adoption of digital payments for small value transactions.

Distribution Of CBDC Through Non-Bank Payment System Operators

The Central Bank Digital Currency (CBDC) pilots are currently in operation with increasing number of use-cases and participating banks. “It is proposed to make CBDC-Retail accessible to a broader segment of users by enabling non-bank payment system operators to offer CBDC wallets. This will also facilitate testing of the resiliency of CBDC platform to handle multi-channel transactions,” Shaktikanta Das added.

Review of Liquidity Coverage Ratio (LCR) Framework

Technological developments have enabled bank customers to instantly withdraw or transfer money from their bank accounts. While improving customer convenience, this has also created challenges for banks to deal with potential situations when, due to certain factors, a large number of depositors decide to instantly and simultaneously withdraw their money from banks. Shaktikanta Das observed: “The developments in certain jurisdictions last year demonstrated the difficulties it can create for banks to deal with such situations. A need has, therefore, arisen to undertake a comprehensive review of the LCR framework for banks. A draft circular will be issued shortly for stakeholder consultation.”

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