--- title: "BENCHMARKING INDIA’S PAYMENT SYSTEMS" date: 2022-09-19 author: "Sudhaman" url: https://ksandk.com/newsletter/benchmarking-indias-payment-systems/ --- # BENCHMARKING INDIA’S PAYMENT SYSTEMS Posted On - 19 September, 2022 • By - Sudhaman ## Benchmarking India’s Payment Systems The Reserve Bank of India on July 1st 2022 released data concerning India’s Payment Systems benchmarks. The data provides a comparative position of the payment ecosystem in India relative to other major countries. The benchmarking activity was first conducted in [2019](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=47222) concerning the position in 2017. This follow-on benchmarking exercise, covering the same countries and parameters used in the earlier study, was undertaken concerning the position in 2020. Below are the highlights of the study: - India has been considered a ‘leader’ or ‘strong’ in 25 (21 in the previous exercise) out of 40 indicators and categorized as ‘weak’ in 8 (12 in the previous exercise) indicators. - India has made a substantial improvement and moved to a leadership position in large value payment systems and fast payment systems, which contributed to quick growth in digital payments. - Since the last exercise, India has demonstrated an improvement in digital payment options available for bill payments, ticketing systems for public transportation, available channels for cross-border remittances and a decline in cheque usage. - The exercise highlights that there is an opportunity for improvement in acceptance infrastructure i.e., ATMs and PoS terminals. The [Payments Infrastructure Development Fund (PIDF) scheme](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12009&Mode=0) came into force in 2021 to improve the acceptance infrastructure and bridge the gap. - The decline in India’s rating in some parameters involving currency in circulation is explained by the increased demand for cash as a store of value during the Covid-19 pandemic-related lockdown and the slowdown in economic growth during 2020. The learnings from the benchmarking exercise are expected to facilitate further improvement in the payments landscape in India. ***B Sudhaman, Principal Associate*** --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)