RuPay cards to digital lending: What has RBI announced

e-RUPI vouchers

The RBI has proposed to expand the scope and reach of e-RUPI vouchers by permitting non-bank Prepaid Payment Instrument issuers to issue e-RUPI vouchers and enabling issuance of e-RUPI vouchers on behalf of individuals. Other aspects like reloading of vouchers, authentication process and issuance limits will also be modified to facilitate use of e-RUPI vouchers. At present, purpose-specific vouchers are issued by banks on behalf of central and state governments and to a limited extent on behalf of companies.

BBPS to be streamlined

To enhance efficiency of the system and encourage greater participation, the process flow of transactions and membership criteria for onboarding operating units in Bharat Bill Payment System (BBPS) will be streamlined. Currently, BBPS has on-boarded over 20,500 billers and processes over 9.8 crore transactions every month.

Digital lending

The central bank has decided to put in place a regulatory framework for permitting Default Loss Guarantee arrangements in digital lending. Detailed guidelines on the matter will be issued separately. This is in tune with an objective of maintaining a balance between innovation and prudent risk management, the RBI said.

Priority sector lending targets

The RBI has decided to extend the phase-in time for achievement of priority sector lending targets of urban co-operative banks by two years, up to March 31, 2026. Further, suitable incentives shall be provided to such banks that have met the prescribed targets as on March 31, 2023.

Authorised persons under FEMA

The central bank has decided to rationalise and simplify the licensing framework for authorised persons (APs) under FEMA to effectively meet the emerging requirements of the rapidly growing economy. The objective is to achieve operational efficiency in the delivery of foreign exchange facilities to common persons, tourists and businesses, while maintaining appropriate safeguards.