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Fintech firms hail RBI's decision to review RTGS, NEFT charges - Who said what

The move by RBI is certainly an encouraging one and it is likely to have a significant impact on India's cashless economy vision.

Fintech firms hail RBI's decision to review RTGS, NEFT charges - Who said what
The RBI move would commoditise the transaction based business models in India and push the digital economy in India. Photo courtesy: HDFC website
Written By: Asit Manohar
Updated: Tue, Jun 11, 2019
02:59 pm
New Delhi, ZeeBiz WebDesk
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The fintech companies have welcomed the Reserve Bank of India (RBI) decision to review the NEFT (National Electronic Funds Transfer) and  RTGS (Real Time Gross Settlement) in its recently held Monetary Policy Committee meeting. The industry insiders have said that it would commoditise the transaction based business models in India and push the digital economy in India.  They are of the opinion that with a favourable environment being created for digital transactions for businesses of all sizes even business who have shied away from using digital transactions will now be able to adopt digital transactions more easily. 

Speaking on the push to digitise business model Ajay Adiseshann, Founder and CEO, PayMate said, "Electronic funds transfer options like NEFT and RTGS are commoditised and transaction-based business models around these were always challenged. RBIs move is the final in the coffin for this model but will give rise to subscription models with bundled services."

Batting for more such moves that can augment growth in digital economy Tanul Mishra, Founder and CEO, Afthonia Lab said, "The move by RBI is certainly an encouraging one and one that is likely to have a significant impact on India's cashless economy vision. With a favourable environment being created for digital transactions for businesses of all sizes even business who have shied away from using digital transactions will now be able to adopt digital transactions more easily. As an independent incubator, this is exactly the kind of fertile ground we seek as we journey to nurture and foster the right innovations that can augment growth not only for the businesses they serve directly but also create a larger impact for society as we march ahead. In India that could be in the form of grassroots being brought into the financial fold more effectively through a digitally powered ecosystem. The role of governing bodies is to enable and empower and the role of incubators is to harness this environment effectively for the growth of innovation. More such moves will only spur India in the right direction.”