PARAGRAP HEADING REMARKS

H No.
Part A: Introduction 1. As payment and settlement systems are essential,

1 RBI is making attempts to ease the friction in the

payment system while ensuring statutory and
regulatory compliance through augmentation of
payment infrastructure and introducing innovative
and inclusive payment systems.
2. Cost related framework is to be market-determined
to ensure optimal cost and appropriate return to
operators. The objective is to assess the impact on
efficiency, growth and acceptance of such systems.

2 Rationale for 1. Since there exists additional expenditure for such

Prescribing PSOs to operate efficient and safe payment
Charges systems, recovery of these costs and generation of
sufficient returns is the main objective.
2. It is important to ensure that the proposed market-
determined charges that may change the PSOs
operating system are in such a manner that ensure
incentives for service providers and the users.
3 Types of Payment 1. Payment systems are categorised into two types
Systems a. Funds Transfer Payment Systems- Person
to Person (P2P) transactions. Eg- RTGS,
NEFT, IMPS
b. Merchant Payment Systems- Person to
Merchant (P2M) transactions.
Eg-
i. Card Networks: issuance of cards,
and facilitate transfer from one card
to another.
ii. Prepaid Payment Instrument issuers:
issued by banks and by non-banks
(authorised to issue cards in
association with authorised card
networks)
2. UPI facilitates immediate credit with real time
confirmation unlike RTGS and NEFT.
4 Ownership of 1. The costs/returns are linked to the ownership
Payment Systems structure and are important considerations for
public or private sector venture. The ownership
 BRIEF ON DISCUSSION PAPER ON CHARGES IN PAYMENT SYSTEMS
This discussion paper outlines the existing guidelines pertaining to the charges levied in
payment systems and other modes through which such charges could be levied. The RBI
seeks feedback from the public and stakeholders for the purpose of policy making which
would help restructuring the framework of charges levied.