RBI asks SLBCs to identify one district per state for Digital Payments Ecosystem expansion

With a view to expanding and deepening the digital payments ecosystem, on Monday, October 7, 2019, directed all state level bankers’ committees to find out one district each on a pilot basis to expand digital payments ecosystem.
The development comes after the Statement on Developmental and Regulatory Policies announced by RBI on October 4, 2019, deciding that State/UT Level Bankers Committees (SLBCs/ UTLBCs) shall identify one district in their respective States/UTs for digital payment ecosystem on a pilot basis in consultation with banks and stakeholders. The district identified by the bank shall have significant footprint which will attempt to make that district 100 percent digitally enabled within one year. In the digitally enabled district every individual will be enabled to make or receive payments digitally in a safe, secure, quick, and affordable and convenient manner.
The RBI notification clarified that process of selection and allotment of identified district to a bank should be done, as far as possible, through mutual consultation and voluntary acceptance by the concerned bank. According to the notification, the SLBCs/UTLBCs should try to ensure that to the extent possible, districts identified are converged with the ‘Transformation of Aspirational Districts’ programme of the government which will include providing the necessary infrastructure and literacy to handle such transactions. Further, SLBC/ UTLBC convener banks are required to monitor the progress made in this regard on a quarterly basis and report the same to concerned regional offices/ sub-offices of the Reserve Bank.