India to launch interoperability of digital payment systems for Internet banking in 2024

The Reserve Bank of India (RBI) anticipates the initiation of interoperability for digital payment systems in Internet banking by 2024, facilitating swifter fund settlements for merchants, as stated by RBI Governor Mr. Shaktikanta Das on Monday. The central bank has approved implementing such an interoperable system to NPCI Bharat BillPay Ltd (NBBL), with an expectation for the system's launch within the current calendar year.

Presently, transactions conducted through Payment Aggregators (PAs) in Internet banking lack interoperability, necessitating individual bank integration with each PA affiliated with various online merchants. He emphasized the complexity of the multitude of payment aggregators, making it challenging for banks to integrate seamlessly with each PA. Furthermore, the absence of a unified payment system and standardized transaction rules contributes to delays in merchants receiving payments and heightened settlement risks. The forthcoming interoperable payment system aims to address these challenges, fostering a more efficient and streamlined digital payment ecosystem.

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