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Hyderabad: India is developing a national payment system by emulating Kenya’s successful model, said Reserve Bank of India (RBI) Governor Raghuram Rajan.
Rajan, who met Kenya’s Central Bank Governor Njuguna N’dungu here Thursday, said the African country has a fantastic payment system KEPS (Kenya Electronic Payment and Settlement System) which many others have studied.
“We are on way to have a payment system slightly different because there are some issues on security we differ from them,” he said while addressing students of Indian School of Business (ISB)
“We want to emulate their success by easing the way for mobile companies to help close the last mile and to help provide cash in cash out transactions,” he said.
Rajan said this would become a reality once RBI issues licenses to payment banks which it hopes to do in next few months.
Under the proposed system, a person can approach the kiosk of a mobile company and put money in his bank account. The bank can offer him a loan through mobile company agent. A citizen can also send remittances through mobile company to someone else.
Rajan said this process of e-payment or mobile payment will help connect all those excluded.
The RBI will allow different varieties of the payments so that the vibrant one comes through.
“If you have this system, you don’t need bank branches in all villages. The branch services will be available in all villages,” he added.