The Reserve Bank of India (RBI) issued a discussion paper on “Charges in Payment Systems” on Wednesday. The central bank has requested public feedback on the paper until October 3, 2022.
The RBI’s goal with the paper is to ensure that India has ‘state-of-the-art’ payment and settlement systems that are not only safe and secure, but also efficient, fast, and affordable. The RBI stated in its Payments Vision 2025, which aims to strengthen India’s e-payments ecosystem, that providing digital payment services entails costs such as switching fees and interchange fees, among others, that one or more payment system participants must bear.The cost is either passed on to the merchant as a merchant discount rate (MDR) or to the customer as customer charges
