Mumbai, India, April 22, 2014 -
IFC, a member of the World Bank Group, engaged with central bank regulators, industry practitioners, and partner institutions to establish robust, efficient, inclusive payment systems and delivery mechanisms for those with limited access to financial services in India.
IFC hosted a two-day workshop, in which stakeholders discussed a supportive policy and regulatory environment to help implement standardized and secure payment platforms with strict quality control mechanisms in place. An enabling eco-system would address customer concerns, deploy innovative technologies to maximize reach, and promote e-payment adoption at user and merchant levels. Speakers at the event included heads and top officials of the Reserve Bank of India, Bangladesh Bank, Central Bank of Sri Lanka, Nepal Rastra Bank and the Central Bank of Brazil.
India has made significant strides migrating from cash-based payments to modern electronic, payment systems. India’s central bank, Reserve Bank of India, has been driving this change. Future growth of the sector will depend on innovative products, business models, technology, and infrastructure.
Addressing the workshop on future challenges, Vijay Chugh, Chief General Manager, Department of Payment and Settlement Systems, Reserve Bank of India, said, “There is an urgent need for all stakeholders to collaborate to enable access to an efficient payment system for the unbanked and under-banked population at an affordable cost. This is envisaged in the Reserve Bank's Vision Statement.”
An efficient payments system fosters financial inclusion by increasing savings and reducing costs of exchanging goods and services. While a well-functioning payments system is vital to the country’s financial and capital markets and helps reduce risk, payments are often an entry point into the formal financial sector for low-income households.
“E-payment solutions play a critical role in transforming small businesses. Making cheaper, better, inclusive finance available can help low income communities access greater economic opportunity," said Serge Devieux, IFC South Asia Director.
IFC’s global portfolio in the payments space includes 38 investment and advisory clients. IFC’s extensive work with technology-enabled retail payments and e-banking operations has helped scale up local businesses such as FINO and Suvidhaa in India and bKash in Bangladesh.
About IFC
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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