Home / Business and Economy / RBI Deputy Governor Clarifies Digital Payment Future
RBI Deputy Governor Clarifies Digital Payment Future
18 Sep
Summary
- RBI Deputy Governor dismissed fears that MDR changes will halt digital payments.
- He explained the growing cash circulation is not a paradox, but dual-role.
- Corporate boards hold ultimate accountability for AI deployment, he stressed.
Reserve Bank of India Deputy Governor S. C. Murmu recently addressed significant industry concerns at the Bengal Chamber of Commerce & Industry's Conclave. He allayed fears that changes in Merchant Discount Rate (MDR) costs would hinder India's robust digital payment adoption, attributing initial apprehension to a major cost recovery shift.
Murmu also tackled the apparent contradiction of increasing cash circulation alongside soaring UPI usage. He clarified this "cash paradox" by explaining cash's dual role as both a transaction medium and a store of value, emphasizing digital's growth while acknowledging cash's continued importance for a growing population.
Addressing regulatory speed, Murmu stated that numerous central bank circulars represent structured streamlining, not deregulation. He assured that entities like Small Finance Banks now have clearer, categorized guidelines. Furthermore, he highlighted the collective responsibility in tackling financial frauds and mule accounts, announcing an RBI-led centralized Digital Payments Intelligence Platform.
Finally, on corporate governance in the age of automation, Murmu firmly stated that boards hold ultimate accountability for artificial intelligence deployment. He urged boards to rapidly educate themselves on these evolving technologies.
