Mumbai: The Reserve Bank of India (RBI) has unveiled its Payments Vision 2028, setting out a roadmap to strengthen and expand the country’s fast-growing digital payments ecosystem over the next four years.

Built around the theme ‘Shaping India’s Payment Frontier’, the vision document outlines initiatives aimed at empowering users, enhancing payment security, improving cross-border payment systems and promoting ease of doing business. The roadmap will guide the development of India’s payment ecosystem through December 2028.

Focus on safer and more efficient digital payments

The RBI’s Payments Vision 2028 seeks to make digital payments more secure, accessible and efficient by introducing new frameworks and strengthening existing systems.

The central bank said the roadmap focuses on:

  • Enhancing user empowerment
  • Strengthening safeguards against digital payment fraud
  • Improving cross-border payment efficiency
  • Promoting innovation and ease of doing business
  • Building a more resilient and inclusive payment ecosystem

The initiatives are expected to support the continued growth of digital transactions while addressing emerging challenges in the payments landscape.

Interoperability framework proposed for TReDS

One of the major proposals in the vision document is the development of an interoperability framework for Trade Receivables Discounting Systems (TReDS).

The proposed framework aims to create a more integrated and efficient receivables financing ecosystem, enabling smoother interactions across TReDS platforms and improving access to financing for businesses, particularly micro, small and medium enterprises (MSMEs).

The move is expected to enhance operational efficiency and facilitate faster invoice financing.

‘Switch on/off’ feature planned across digital payment modes

To strengthen user control and reduce the risk of fraud, the RBI plans to explore introducing a ‘switch on/off’ facility across all digital payment modes.

Similar to the card control features already offered by many banks, the proposed mechanism would allow users to temporarily enable or disable specific payment channels whenever required.

The feature is intended to give customers greater control over their accounts and help prevent unauthorised digital transactions.

Cross-border payments to be reviewed

The central bank also plans to review India’s cross-border payment ecosystem with the objective of improving efficiency and simplifying regulatory processes.

As part of the initiative, the RBI will examine ways to streamline authorisation procedures under the Payment and Settlement Systems (PSS) Act, 2007, and the Foreign Exchange Management Act (FEMA), 1999.

The review is expected to support faster, more transparent and cost-effective international payment transactions.

Shared responsibility framework under consideration

Another key proposal outlined in the vision document is the introduction of a shared responsibility framework involving both issuing banks and beneficiary banks.

The framework is being considered to improve the handling of unauthorised digital payment transactions by clearly defining the responsibilities of financial institutions involved in payment processing.

The RBI believes such measures could strengthen consumer protection and improve confidence in India’s digital payment ecosystem.

With Payments Vision 2028, the central bank aims to build on India’s leadership in digital payments by promoting innovation, enhancing security and creating a more robust payment infrastructure capable of meeting the country’s evolving financial needs.