Standards were framed in 2010 to include mandatory security features such as paper, watermark, void pantograph, etc. Following a pilot study in 2008, the RBI rolled out CTS under which image of the cheque was enough for payment processing. High-Value Clearing was introduced during the eighties (and discontinued in 2009) for clearing cheques of the value of Rupees one lakh and above. Magnetic Ink Character Recognition (MICR) clearing system was brought in the mid-1980s under which cheque clearing was carried out electronically through the use of technology.

To clear cheques, a centralized payment and settlement system was needed. Initially, cheque/DD were the only alternative payment options to cash. Paper clearing has been made faster and secure With NPCI International Payments Limited, NPCI is also working towards the internationalization of RuPay and UPI. Even Cheque Truncation System (CTS) was transferred to NPCI. Some retail payments products brought about by NPCI are IMPS, RuPay card scheme, UPI, NACH, Aadhaar-enabled Payments System (AePS), and BBPS. It works on bringing innovations in retail payment systems. The role of NPCI is to provide infrastructure to the banking system in India for physical and electronic payment systems. National Payments Corporation of India (NPCI) was established in 2008 by RBI and Indian BanksвЂ™ Association as an umbrella organization for operating retail payment systems in India. RBI has authorized various Payment System Operators (PSOs) such as NPCI, CCIL, ATM networks, TReDS platform providers, to name a few, to operate payment systems in India. NPCI is an umbrella organization for operating retail payment systems in India The payment system has been defined under the Act as вЂњ a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them, but does not include a stock exchangeвЂќ. The Act appoints RBI to supervise the payment systems in India. The Payment and Settlement Systems Act, 2007 provides for the regulation and supervision of payment systems in India. RBI to supervise payment systems in India In this story, we briefly look at some of the developments in the payment systems through this period. RBI had released booklets on payment systems earlier in 19. which influenced consumer behaviour and hence resulted in the transformation of the payment ecosystem in the country. In India, the period 2010 to 2020 witnessed many defining moments such as the expansion of digital payments, the introduction of wallet applications, etc. The book documents the developments in payment systems in the country in the last decade from 2010 to 2020. Recently, the Reserve Bank of India (RBI) released a booklet on Payment Systems titled вЂ Journey in the Second Decade of the MillenniumвЂ™. Here is a review of the evolution of various digital payments systems in India between 2010 & 2020.

This was driven by increased access to the internet & the mobile phone. The last decade has witnessed an exponential increase in the adoption of digital payments by a large section of the population.

Void pantograph on cheques