(MENAFN- KNN India) The Reserve Bank is likely to allow business correspondents of one bank to offer payment services to other lenders for better efficiency and optimisation.
According to a media report, RBI Deputy Governor H R Khan said that the apex bank is looking at whether a business correspondent (BC) of one bank can do payment services for other banks, like ATMs are doing now.
Citing that India is at its turning point of a big revolution in terms of digital revolution, Khan said digital banking has to be one of the main elements of the digital India plan that the government is driving.
He also said RBI will soon launch and implement Bharat Bill Payment System to address the growing bill payment market.
"We are focusing on the Bharat Bill Payment as there will be a huge market for bill payments. NPCI is going to be the central operating unit and other bill aggregators and banks will join. We hope that in less than a year's time we should be up and running," the report quoted him as saying.
He said the central bank has also received seven applications for setting up an electronic trading platform for trade receivables for the MSME sector.
RBI is also working on a proposal submitted by National Payment Corporation (NPCI) to connect all cash deposit machines through the National Financial Switch (NFS), he said.
This will make these machines inter-operable and allow a customer of a particular bank to deposit cash into his account from any bank's machine.
He said through core banking solution e-Kuber, RBI is in the process of integrating the state and the Central governments' receipts and payments. (KNN Bureau)
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