RBI to reward best innovator in payments system space

MUMBAI: The banking regulator, the Reserve Bank of India (RBI), for the first time will acknowledge the best ideas in payments technology. The RBI has said that it will reward three best innovators in the payments system for five categories which includes mobile payments; and customer convenience and cost reduction among others.

The RBI said that the move is aimed to encourage innovators in area of payments and settlement system. The other three categories include payments security including fraud prevention, acceptance and electronic payment infrastructure and use of emerging technologies for payments.

The announcement comes at a time when pre-paid payment issuers and banks are competing with each to attract customers. In fact, several payment issuers and banks like State Bank of India, ICICI Bank, Axis Bank and HDFC Bank between themselves are launching at least one new product each fortnight.

RBI has issued in principle approval to 11 payments bank, 10 small banks and two commercial banks. Also,

The RBI has not set a deadline for applicants to send their entries, but has said that its wholly owned subsidiary, IDRBT or Institute for Development and Research in Banking Technology, will short invite applications from innovators. Although, RBI has not specified the innovators but it is widely expected to applicants from companies in the space of finance, technology and ecommerce.

The "Payment System Innovation Awards" will be evaluated by a panel of experts.

The banking regulator said that the idea of having such award stems from the strong belief that right innovation has the potential to change the payment landscape. The RBI acknowledges the role of innovations in developing a payment system which is affordable, inter-operable, inclusive and secure, it added.