Implications of Emerging Electronic Payment Systems in India: A Strategic Overview

The purpose of this paper is to study the implications of the development of electronic payment systems in the Indian markets. The electronic payment systems that emerged as a technological innovation, to provide customers with an efficient and secure means of payment, can have far-reaching implications for the country’s banking system, the role of its central bank, its monetary policy, and its economy. This paper identifies the policy issues that arise from the growth of these modern payment systems and discusses the possible policy responses by Reserve Bank of India to mitigate such impacts. The paper concludes that while we cannot slow down the pace of technological innovations, understanding these implications can contribute to finding policy responses and solutions, and building effective safeguards into the system.