Vision 2021 Payment and Settlement System

The Vision 2021 payment and settlement system in India is built on the core theme of Empowering Exceptional (E) Payment Experience. It seeks to empower every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable

Vision 2021 Payment and Settlement System

Aims of Vision

  • enhancing the experience of Customers;
  • empowering payment System Operators and Service Providers;
  • enabling the Eco-system and Infrastructure;
  • putting in place a Forward-looking Regulation;
  • supported by a Risk-focussed Supervision

Two-pronged approach

Vision 2021 concentrates on a two-pronged approach of

  1. exceptional customer experience;
  2. enabling an eco-system which will result in this customer experience


The Vision envisages four goal-posts (4 Cs) –

  1. Competition: For enhancement of Competition in the payment systems landscape, specific thrust areas like creating regulatory sandbox, authorising new players, etc., have been incorporated
  2. Cost: this along with the presence of multiple players in the market is expected to achieve optimal Cost for the customers
  3. Convenience: freer access with availability of multiple payment system options anytime-anywhere should cater to the requirement of Convenience
  4. Confidence: the ‘no-compromise’ approach towards safety of payment systems should address security vulnerabilities to retain customer Confidence

Expected Outcomes of Vision 2021 Payment and Settlement System

The four goal-posts of Vision 2021 with 36 specific action points over the 36-month timeframe will have the following 12 specific outcomes:

  1. Further decrease in the share of paper-based clearing as a percentage of retail payments, particularly in terms of number of paper instruments processed.
  2. Accelerated growth in individual retail electronic payment systems, both in terms of number of transactions and increased availability
  3. Measurably, the digital payment transaction turnover vis-à-vis GDP (at market prices-current price) is expected to further increase to 10.37 in 2019, 12.29 in 2020 and 14.80 in 2021. Payment transaction turnover, including CCIL transactions and paper, is expected to be 22.30 times the GDP (at market prices-current price) by December 2021
  4. Increase in use of digital modes of payment for purchase of goods and services through increase in debit card transactions at PoS and continued growth in PPI transactions
  5. Usage of debit cards at PoS transactions is expected to be at least 44 % of total debit card transactions (at PoS + ATM).
  6. Increased deployment of card acceptance infrastructure across the country including at smaller centres with a substantial portion of the infrastructure taking care of processing contactless card payments
  7. The enhanced availability of PoS infrastructure is expected to reduced demand for cash and thus over time achieve reduction in Cash in Circulation (CIC) as a percentage of GDP.
  8. Further facilitation of mobile based payment transactions as gauged on basis of the registered customer base (expected increase of 50 % considering the base effect).
  9. Enhanced usage of electronic payment systems is expected to reduce the marginal cost given the additional volume. The pricing of such services to customers should, over the vision period, show reduction of at least a 100 bps from current levels.
  10. Security of systems and customer centricity as reflected by –
    1. Decrease in Technical Declines reported across various payment systems by 10 % year-on-year.
    2. Reduction in Business Declines reported across various payment systems by 5 % year-on-year.
    3. Improvement in Turn Around Time (TAT) for resolution of customer complaints by PSOs.
  11. FTS [Fraud to Sales (Fraud value / Sales value) x 10000] count for payment systems is expected to be less than 10 bps for most of the payment systems
  12. Enhanced healthy competition in the payments space and establishment of new PSOs during the Vision period is envisaged

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