Reserve Bank of India has published Annual Review (FY 2007) of Payment and Settlement Systems. Itâ€™s encouraging to read that RBI is taking some concrete steps to increase the penetration of electronic payments. I specially found Chapter 2 and 4 of this report interesting.
Some interesting observations:
- Electronic Bill Payment ( for utilities ) has increased 9x in volume and 11x in Amount since FY 2003-07 â€“ It would be interesting to know the reasons behind this increase when other Use Cases hasnâ€™t grown that much. Is it convenience?
According to the survey â€“ Cost and Awareness are two significant factors hampering the growth of electronic payments. Interestingly, electronic payment infrastructure doesnâ€™t seem to be an issue, at least in Metros
Report makes a good case of widespread use of NEFT for small payments which is still dominated by Cheque â€“ especially because cheques put a cost on the bank and users.
Comments/Feedback/Critical Assessment on the report?