ANNUAL REPORT 2023-24

PAYMENT AND SETTLEMENT SYSTEMS

IX AND INFORMATION TECHNOLOGY

The Reserve Bank during 2023-24 sustained its endeavour towards providing secure, accessible, affordable and
efficient payment systems for every user of the country. The Reserve Bank also explored avenues for expanding the
global outreach of Unified Payments Interface (UPI) and RuPay cards. The Reserve Bank remained steadfast
in its efforts to ensure robust and secured Information and Communication Technology (ICT) infrastructure for
smooth functioning of IT systems and applications in the Reserve Bank.

IX.1 Efficient payment and settlement IX.3 Against this backdrop, section 2 covers
systems foster economic development, promote developments in payment and settlement systems
financial stability and support financial inclusion. during 2023-24 and an assessment of the
Ensuring safe and efficacious payment systems implementation status of the agenda for 2023-24.
has been one of the important strategic goals Section 3 provides various measures undertaken
by the DIT during the year vis-à-vis the agenda
of the Reserve Bank. The Reserve Bank is
set for 2023-24. The agenda for 2024-25 is also
increasingly becoming a catalyst of innovation in
discussed. The chapter has been summarised in
the payments’ ecosystem, while also addressing
section 4.
risks and challenges and ensuring that the
2. DEPARTMENT OF PAYMENT AND
benefits of advancements reach a wider segment
SETTLEMENT SYSTEMS (DPSS)
of the population. The Reserve Bank explored the
possibilities for increasing the global footprints of IX.4 During the year, the DPSS launched
UPI and RuPay cards by engaging with the central initiatives in line with the Payments Vision
Document 2025 across anchor goalposts
banks of various countries.
of integrity, inclusion, innovation, and
IX.2 The Department of Information Technology internationalisation. These measures were aimed
(DIT) persevered with its efforts towards at enhancing the payments ecosystem and
developing a state-of-the-art ICT infrastructure in fostering a regulatory environment conducive to
the Reserve Bank for smooth functioning of its in- the growth of payment systems (Box IX.1).
house IT systems and applications. During the year, Payment Systems
besides enhancements in e-Kuber and payment
IX.5 The payment and settlement systems1
systems, several initiatives were undertaken
recorded a growth of 44 per cent in terms of
towards revamping major internal software transaction volume during 2023-24 on top of the
applications such as enterprise knowledge portal expansion of 57.8 per cent in the previous year
(EKP), Sarthi (electronic document management (Table IX.1). In value terms, the growth was 15.8
system/digital workflow application), and EKAMEV per cent in 2023-24 as against 19.2 per cent in the
(single sign-on portal for the employees). previous year, with moderation in growth rate of

1
Data are for total payments, including digital payments and paper-based instruments.

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Box IX.1
Enhancements in UPI to Facilitate User Access and Convenience
UPI, with its ease of usage, safety and security, and based UPI channels to deepen digital penetration in the
real-time feature, has transformed the digital payments country;
ecosystem in India. A fast payment system like UPI with
ii. UPI Lite on-device wallet has been gaining traction and
features like instant transfer of funds (24X7), use of virtual
payment address, facilitation of peer-to-peer (P2P) and currently processes more than 10 million transactions
peer-to-merchant (P2M) transactions is immensely useful to a month. To promote the use of UPI-Lite, offline
the users. The steady stream of innovations has enhanced transactions using near field communication (NFC)
its usefulness and ease of use, which has resulted in UPI technology were also enabled. This feature not only
becoming the single largest retail payment system in terms allows retail digital payments in situations where
of volume of transactions. The Reserve Bank has supported internet/telecom connectivity is weak or not available,
addition of many new features in UPI to enrich product but also ensures faster transactions, with minimal
offering - for instance, UPI123Pay, UPI Lite on-device rejections; and
wallet, linking RuPay credit cards to UPI, and processing
iii. The scope of UPI was expanded by enabling transfer
mandates with single-block-and-multiple-debits. Continuing
to/from pre-sanctioned credit lines at banks in addition
this trend, the following new enhancements were introduced
in UPI during 2023-24: to deposit accounts. In other words, UPI network will
facilitate payments financed by credit from banks.
i. An innovative payment mode, viz., ‘Conversational This can reduce the cost of such offerings and help in
Payments’ was enabled in UPI to allow users to engage
development of unique products for Indian markets.
in conversation with an artificial intelligence (AI)-
powered system to initiate and complete transactions in Such innovations on an ongoing basis have facilitated the
a safe and secure environment. This channel is made expansion of usage and user base of UPI and enabled the
available in both smartphones and feature phones- provision of digital payment instruments as ‘public goods.’

both retail and large value payment system [viz., while NEFT services were available through
real time gross settlement (RTGS)]. The share 1,72,290 IFSCs of 233 member banks.
of digital transactions in the total volume of non- IX.7 Payments Infrastructure Development
cash retail payments increased marginally to 99.8 Fund (PIDF) substantially aided the growth in
per cent during 2023-24 from 99.6 per cent in the digital payments during the year by subsidising
previous year. deployment of Point of Sale (PoS)/mobile PoS
(mPoS) terminals, interoperable Quick Response
Digital Payments (QR) infrastructure, Aadhaar enabled biometric
IX.6 Among the digital modes of payments, devices, and other contemporary devices. It
RTGS transactions increased by 11.3 per cent has improved the availability of acceptance
infrastructure, especially in Tier III to Tier VI
during 2023-24 in volume terms and 14 per cent
centres. During 2023-24, the number of PoS
in value terms. The volume and value of retail
terminals increased by 14.3 per cent to 89.0 lakh,
transactions increased by 44.1 per cent and while the number of Bharat QR (BQR) codes
20.1 per cent, respectively (Table IX.1). As at deployed increased by 16.1 per cent to 62.5 lakh.
end-March 2024, RTGS services were available UPI QR codes increased by 35.0 per cent to 34.6
through 1,70,855 IFSCs2 of 247 member banks, crore as at end-March 2024.

2
Indian Financial System Code.

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 ANNUAL REPORT 2023-24

Table IX.1: Payment System Indicators - Annual Turnover (April-March)

Volume (lakh) Value (₹ lakh crore)
Item
2021-22 2022-23 2023-24 2021-22 2022-23 2023-24
1 2 3 4 5 6 7
A. Settlement Systems
CCIL Operated Systems 33 41 43 2,068.7 2,588.0 2,592.1
B. Payment Systems
1. Large Value Credit Transfers - RTGS 2,078 2,426 2,700 1,286.6 1,499.5 1,708.9
Retail Segment (2 to 6)
2. Credit Transfers 5,77,935 9,83,621 14,86,107 427.3 550.1 675.4
2.1 AePS (Fund Transfers) 10 6 4 0.006 0.004 0.003
2.2 APBS 12,573 17,834 25,888 1.3 2.5 3.9
2.3 ECS Cr - - - - - -
2.4 IMPS 46,625 56,533 60,053 41.7 55.9 65.0
2.5 NACH Cr 18,758 19,257 16,227 12.8 15.4 15.3
2.6 NEFT 40,407 52,847 72,640 287.3 337.2 391.4
2.7 UPI 4,59,561 8,37,144 13,11,295 84.2 139.1 200.0
3. Debit Transfers and Direct Debits 12,189 15,343 18,250 10.3 12.9 16.9
3.1 BHIM Aadhaar Pay 228 214 194 0.1 0.1 0.1
3.2 ECS Dr - - - - - -
3.3 NACH Dr 10,755 13,503 16,426 10.3 12.8 16.8
3.4 NETC (Linked to Bank Account) 1,207 1,626 1,629 0.02 0.03 0.03
4. Card Payments 61,783 63,325 58,470 17.0 21.5 24.2
4.1 Credit Cards 22,399 29,145 35,610 9.7 14.3 18.3
4.2 Debit Cards 39,384 34,179 22,860 7.3 7.2 5.9
5. Prepaid Payment Instruments 65,783 74,667 78,775 2.8 2.9 2.8
6. Paper-based Instruments 6,999 7,109 6,632 66.5 71.7 72.1
Total Retail Payments (2+3+4+5+6) 7,24,689 11,44,065 16,48,234 523.9 659.1 791.5
Total Payments (1+2+3+4+5+6) 7,26,767 11,46,491 16,50,934 1,810.5 2,158.6 2,500.4
Total Digital Payments (1+2+3+4+5) 7,19,768 11,39,382 16,44,302 1,744.0 2,086.8 2,428.2

CCIL : Clearing Corporation of India Ltd. AeP : Aadhaar Enabled Payment System. Cr : Credit.
APBS : Aadhaar Payment Bridge System. ECS : Electronic Clearing Service. Dr : Debit.
IMPS : Immediate Payment Service. NACH : National Automated Clearing House. - : Nil/Negligible.
NEFT : National Electronic Funds Transfer. BHIM : Bharat Interface for Money.
NETC : National Electronic Toll Collection.
Note: 1. RTGS system includes customer and inter-bank transactions only.
2. Settlements of government securities and forex transactions are through the CCIL. Government securities include outright trades and
both legs of repo transactions and triparty repo transactions.
3. Figures for cards are for payment transactions at Point of Sale (PoS) terminals and online.
4. Figures in the columns might not add up to the total due to rounding off of numbers.
Source: RBI.

Authorisation of Payment Systems platform operator, besides granting in-principle

IX.8 During the year, the Reserve Bank authorisation to a few other online PAs, PPIs, one
accorded Certificate of Authorisation to 22 online white label ATM (WLA) operator and one TReDS
Payment Aggregators (PAs), two non-bank platform operator. Moreover, during the year, the
Prepaid Payment Instrument (PPI) issuers and one Reserve Bank granted approval to one bank for
Trade Receivables Discounting System (TReDS) PPI issuance, two banks for operating as Bharat

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Table IX.2: Authorisation of Payment System systems (CPS), i.e., NEFT and RTGS,
Operators (PSOs) [end-March] in compliance with principles for financial
(Number)
market infrastructure (PFMI) standards, a
Entities 2023 2024
resilient framework prescribing standards,
1 2 3
frequency and disclosures for the oversight
A. Non-Banks – Authorised
of CPS would be formulated (Utkarsh 2.0)
PPI Issuers 36 38
[Paragraph IX.10];
Payment Aggregator (Online) - 22
WLA Operators 4 4 ● The PIDF has received overwhelming
Instant Money Transfer Service 1 1 support from the contributors (viz.,
Providers
BBPOUs 10 10 the Reserve Bank, card networks and
TReDS Platform Operators 3 4 card issuing banks) and acquirers for
MTSS Operators 8 8 deployment of payment acceptance
Card Networks 5 5 infrastructure3. The implementation of the
ATM Networks 2 2
scheme threw up various innovative ideas
B. Banks – Approved
and field level experiences. The feasibility
PPI Issuers 58 59
BBPOUs 44 46 of continuing the PIDF scheme would be
Mobile Banking Providers 725 777 explored (Utkarsh 2.0) [Paragraph IX.10];
ATM Networks 3 3
● To enhance the payment experience
Note: 1. PSOs comprise PPI issuers, online payment aggregators
(PAs-Online), cross-border money transfer service
further, the feasibility of real-time payee
schemes (MTSS), WLA operators, TReDS platforms, name validation before actual fund transfer
ATM networks, instant money transfer service providers,
card networks, BBPOUs and central counterparty
would be explored (Paragraph IX.10); and
(CCP), besides the CCIL and the National Payments
Corporation of India (NPCI).
● To continue with initiatives to enhance
2. In addition, one non-bank entity has also been granted dissemination of granular data on payment
authorisation to operate as a CCP.
Source: RBI.
systems to provide useful insights to
stakeholders and facilitate research and
Bill Payment Operating Units (BBPOUs), and 52 further innovations in payment systems
banks for providing mobile banking facility to their (Paragraph IX.10).
customers (Table IX.2). In addition, guidelines
Implementation Status
have been prescribed to include PAs-Cross
Border as well under the regulatory purview of the IX.10 The Reserve Bank has formulated a
Reserve Bank. standard operating procedure (SOP) for oversight
of CPS, i.e., NEFT and RTGS, based on the
Agenda for 2023-24
learnings from the internal assessment of CPS
IX.9 The Department had set out the following in line with PFMI standards. As announced in
goals for 2023-24: the Statement on Developmental and Regulatory
● Based on learnings from the internal Policies (October 6, 2023), the PIDF scheme
assessment of the centralised payment was extended by a period of two years, i.e., up

3
The scheme’s initial target of creating 90 lakh payment touch points by the end of December 2023 was met by the end of the first year
itself, i.e., December 2021.

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to December 31, 2025. The Reserve Bank is institutions. This will provide cardholders with
working on the implementation of the ‘payee name an additional choice to tokenise their cards for
look-up facility’ in compliance with newly enacted multiple merchant sites through a single process.
‘The Digital Personal Data Protection Act, 2023’.
Cyber Resilience and Payment Security Controls
The Reserve Bank is also working on enhancing
coverage and granularity of published payment of PSOs
transaction data, which shall provide useful IX.14 The Reserve Bank placed ‘Draft Master
insights to stakeholders and facilitate research Direction on Cyber Resilience and Payment
and further innovations in payment systems. Security Controls of PSOs’ on its website
Major Developments for comments. The document covers robust
governance mechanisms for identification,
Integrity
analysis, monitoring and management of
Regulation of Payment Aggregators - Cross information security, including cyber security
Border (PAs - Cross Border) risks and vulnerabilities, and baseline security
IX.11 PAs-Cross Border are entities that facilitate measures for ensuring safe and secure digital
cross-border payment transactions for import payment transactions.
and export of permissible goods and services in
Arrangements with Card Networks for Issue of
online mode. Keeping in view the developments
Credit Cards
that have taken place in cross-border payments, it
was decided to bring all such entities under direct IX.15 The Reserve Bank asked card issuers
regulation of the Reserve Bank, and guidelines (banks/non-banks), with 10 lakh or more active
for the regulation of PAs-Cross Border were cards issued by them, not to enter into any
accordingly issued during the year. arrangement or agreement with card networks
Creating a Common Corporate Governance that may limit their ability to tie-up with other card-
Structure for RTGS and NEFT networks. They were also mandated to provide the
customers the facility to choose among multiple
IX.12 A Standing Committee for management
card networks.
of CPS has been constituted for providing
a structured forum for continuous dialogue Amendments to Master Direction on PPIs
with members to create a common corporate
IX.16 The Reserve Bank permitted authorised
governance structure for RTGS and NEFT
bank and non-bank PPI issuers to issue PPIs
systems.
for mass transit systems (PPI-MTS) for making
Card-on-File Tokenisation (CoFT)4 - Enabling payments across various public transport
Tokenisation Through Card Issuing Banks systems. This will provide convenience, speed,
IX.13 The Reserve Bank permitted CoFT affordability and safety of digital modes of
facilities directly through card issuing banks/ payment to commuters for transit services.

4
Under this framework, cardholders can create “tokens” (a unique alternate code) in lieu of card details. These tokens can then be stored
by the merchants for processing transactions in future. A token thus created is specific to the card and online/e-commerce merchant, i.e., the
token cannot be used for payment at any other merchant.

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Self-Assessment of RTGS and NEFT Under Expanding the Scope and Reach of e-RUPI
Principles for Financial Market Infrastructures Vouchers
(PFMIs) IX.20 The Reserve Bank expanded the scope
IX.17 The centralised payment systems which of e-RUPI vouchers by permitting non-bank PPI
include RTGS and NEFT, are owned and operated issuers to issue e-RUPI vouchers, enabling its
by the Reserve Bank. To enhance the robustness issuance on behalf of individuals, and modifying
of the centralised payment systems, their self- other aspects like reloading of vouchers,
assessment against the PFMIs was carried authentication process, and issuance limits to
out in 2023-24. Such self-assessments will be facilitate use of e-RUPI vouchers.
carried out annually from 2023-24. Since RTGS is Streamlining Bharat Bill Payment System (BBPS)
categorised as a financial market infrastructure, a Processes and Membership Criteria
public disclosure document for RTGS, based on
IX.21 The Reserve Bank revised the regulatory
the self-assessment, has been published on the
framework for BBPS in view of significant
Reserve Bank’s website. developments that have taken place in this domain.
Innovation This will streamline the process of bill payments,
enable greater participation, and enhance
Interoperable Payment System for Internet
customer protection, among other changes.
Banking Transactions
Inclusion of Pradhan Mantri Vishwakarma Scheme
IX.18 Internet banking transactions processed
Beneficiaries Under PIDF Scheme
through PAs are not interoperable, i.e., a bank
is required to separately integrate with each IX.22 The beneficiaries identified as part
PA of different online merchants. As a result, of the Pradhan Mantri Vishwakarma scheme
there are delays in actual receipt of payments across the country were included as merchants
by merchants, which may result in settlement for deployment under the PIDF scheme. Other
risks. The Reserve Bank gave approval for contemporary devices, viz., (i) soundbox devices
and (ii) Aadhaar-enabled biometric devices, were
implementing an interoperable payment system
also made eligible for subsidy under the scheme.
for internet banking transactions to NPCI Bharat
The amount of subsidy for devices deployed in
BillPay Ltd. (NBBL). The new system will facilitate
special focus areas, viz., North-Eastern states,
quicker settlement of funds for merchants.
and Union Territories of Jammu & Kashmir and
Financial Inclusion Ladakh, was increased from 75 per cent to 90
Expanding the Scope of TReDS per cent of the total cost, irrespective of the type
of device, to further accelerate and augment the
IX.19 The Reserve Bank expanded the scope
deployment of payment acceptance infrastructure.
of activity in TReDS by permitting insurance for
transactions, increasing the pool of financiers, Processing of e-Mandates for Recurring
and enabling secondary market for factoring Transactions
units (FUs). This will improve the cash flows of IX.23 The Reserve Bank enhanced the limit for
MSMEs. subsequent recurring transactions undertaken

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without additional factor of authentication, as of the system and has enabled rationalisation of
prescribed in the e-mandate framework, from cheque clearing infrastructure. After the merger,
₹15,000 to ₹1,00,000 per transaction for the all cheques presented through the CTS are being
following categories: (a) subscription to mutual processed as local cheques.
funds, (b) payment of insurance premia, and (c) Enhancing Public Awareness through Various
credit card bill payments. Channels
Enhancing UPI Transaction Limit for Specified IX.27 The Reserve Bank has been conducting
Categories electronic banking awareness and training
IX.24 The Reserve Bank enhanced the limit for (e-BAAT) programmes regularly for the benefit
UPI payments made to hospitals and educational of various strata of society across the country.
institutions from ₹1 lakh to ₹5 lakh per transaction. During the year, 340 e-BAAT programmes were
conducted by the regional offices of the Reserve
Enhancing the Robustness of Aadhaar Enabled
Bank, in which safe usage of electronic payment
Payment System (AePS)
systems, their benefits and grievance redressal
IX.25 The Reserve Bank proposed to streamline mechanisms were explained to the participants.
the onboarding process, including mandatory due
Digital Payments Awareness Week 2024
diligence, for AePS touchpoint operators, to be
followed by banks. In 2023, more than 37 crore IX.28 The Reserve Bank observed the Digital
users undertook AePS transactions, which points Payment Awareness Week during March 4-10,
to the important role played by AePS in financial 2024 with the theme ‘Digital Payment, Surakshit
inclusion. Additional fraud risk management Payment’ (‘Digital Payment, Safe Payment’) under
requirements will also be considered, which will the mission ‘Har Payment Digital’5. As part of the
enhance the robustness of the AePS. initiative, all regional offices of the Reserve Bank
will start regional campaigns to convert market
Merger of Grids Under Cheque Truncation System
places like vegetable markets/mandis and public
(CTS)
transport infrastructure like auto/taxis into digital
IX.26 To promote efficient cheque processing, payment enabled clusters in their chosen areas.
the Reserve Bank had undertaken to migrate
Internationalisation
CTS from an architecture of three regional grids
to one national grid. The merger was completed Global Outreach of Payment Systems
on October 13, 2023. The merged grid has been IX.29 The Payments Vision Document 2025 has
named as National Grid Clearing House (NGCH) outlined expanding the global outreach of UPI and
and the Reserve Bank, Chennai office, has been RuPay cards as one of the key objectives under
designated as the nodal office for management the internationalisation pillar. The Reserve Bank is
and oversight of the operations of the merged in talks with central banks of various countries for
grid. The merger has improved liquidity efficiency entering into collaborative arrangements.

5
Launched on March 6, 2023.

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IX.30 In July 2023, the Reserve Bank and Other Initiatives

the Central Bank of the UAE (CBUAE) signed Digital Payments Index (DPI)
a memorandum of understanding (MoU) for
IX.34 The Reserve Bank had constructed a
interlinking their payments infrastructure. Under
composite DPI in 2021 to capture the extent of
this MoU, the two central banks agreed, inter
digitisation of payments across the country. The
alia, to cooperate on linking their Fast Payment
RBI-DPI index is computed semi-annually and
Systems [UPI of India with Instant Payment
has demonstrated significant growth, representing
Platform (IPP) of UAE called Aani] and for linking
rapid adoption and deepening of digital payments
their respective Card Switches (RuPay switch and
across the country. The DPI increased by 10.9 per
UAESWITCH).
cent to 418.8 in September 2023 from 377.5 in
IX.31 In February 2024, RuPay cards and September 2022 (Chart IX.1).
UPI connectivity between India and Mauritius
Inspection of PSOs
was launched. With this connectivity, an Indian
traveller to Mauritius will be able to pay a merchant IX.35 Under Section 16 of the Payment and
in Mauritius using UPI apps. Similarly, a Mauritian Settlement Systems Act, onsite inspections of
49 entities, viz., one retail payment organisation
traveller will be able to do the same in India using
[NPCI which includes NPCI Bharat BillPay Ltd.
the instant payment system apps of Mauritius.
(NBBL), RuPay Cards, and NPCI International
Further, with the adoption of RuPay technology,
Payments Ltd. (NIPL)], 29 non-bank PPI issuers,
the Mauritius Central Automated Switch
four WLA operators (WLAOs), 10 BBPOUs, one
(MauCAS) card scheme will enable banks in
card network, two TReDS platform providers, one
Mauritius to issue RuPay cards domestically. Such
ATM network provider, and one entity facilitating
cards can be used at ATMs and PoS terminals
instant money transfer (IMT) were carried out by
locally in Mauritius as well as in India. With this,
Mauritius has become the first country outside Chart IX.1: Digital Payments Index
Asia to issue cards using RuPay technology. 500

IX.32 In February 2024, UPI connectivity

460
418.8
420
between India and Sri Lanka was launched. This 377.5
395.6
Index (March 2018 = 100)

380
connectivity has enabled Indian travellers to make 349.3
340
QR code-based payments at merchant locations 304.1
300
in Sri Lanka using UPI apps. 260
270.6

217.7
IX.33 The Reserve Bank and Nepal Rastra 220 207.8
173.5
Bank are actively exploring the linkage of UPI 180
153.5

platform of India and National Payments Interface 140

of Nepal for enabling cross-border payments. In 100

Mar-19

Sep-19

Mar-20

Sep-20

Mar-21

Sep-21

Mar-22

Sep-22

Mar-23

Sep-23

June 2023, NPCI International Payments Ltd.

(NIPL) and Nepal Clearing House Ltd. (NCHL)
signed a MoU for the purpose.
Source: RBI.

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 ANNUAL REPORT 2023-24

the Reserve Bank during 2023-24. The Department session. Under on-realisation model, a
undertook enforcement action against one PSO single settlement would be arrived at after
for contraventions/non-compliance of directions closure of return session for net position
issued by the Reserve Bank. of each bank. This is expected to improve
Developments in CCIL liquidity efficiency of the CTS;

IX.36 The Reserve Bank and the Bank of ● In light of goals for Viksit Bharat 2047,
England (BoE) signed a MoU on December 1, the Reserve Bank, along with NPCI
2023, concerning cooperation and exchange International Payments Ltd. (NIPL) will
of information in relation to CCIL. The MoU work towards taking UPI to 20 countries
establishes a framework for BoE to place with initiation timeline of 2024-25 and
reliance on the Reserve Bank’s regulatory and completion timeline of 2028-29. Further,
supervisory activities while safeguarding United Fast Payment System (FPS) collaboration
Kingdom’s (UK’s) financial stability. The MoU also with group of countries like European
demonstrates the importance of cross-border Union and South Asian Association for
cooperation to facilitate international clearing Regional Cooperation (SAARC), as well as
activities and BoE’s commitment to defer to multilateral linkages will be explored;
other regulators’ regimes, besides confirming ● At present, the payments ecosystem (card
the interests of both the authorities in enhancing networks/banks/PPI entities) has largely
cooperation in line with their respective laws adopted SMS-based one-time password
and regulations. It also enables BoE to assess (OTP) as additional factor of authentication
the application of CCIL for recognition as a third (AFA). However, with the advancements
country CCP, which is a pre-requisite for UK- in technology, various innovative solutions
based banks to clear transactions through CCIL. are now available to address the fraud and
Pursuant to the signing of the MoU on December friction in payments. Hence, an alternate
15, 2023, BoE provided recognition to CCIL. risk-based authentication mechanism
leveraging behavioural biometrics, location/
Agenda for 2024-25
historical payments, digital tokens, and in-
IX.37 In 2024-25, the Department will focus on app notifications will be explored; and
the following goals:
● Presently, centralised payment systems
● The Central Payments Fraud Information (RTGS and NEFT) rely only on account
Registry (CPFIR) reporting will be extended number and IFSC for transfer of funds.
to local area banks, state cooperative With an aim to curb frauds and enhance
banks, district cooperative banks, regional the payment experience further, the
rural banks (RRBs) and non-scheduled introduction of real-time payee name
urban cooperative banks (UCBs) for validation before the actual fund transfer
payment fraud reporting (Utkarsh 2.0); will be explored in compliance with newly
● Presently, CTS has two settlements, one for enacted ‘The Digital Personal Data
presentation session and other for return Protection Act, 2023’.

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3. DEPARTMENT OF INFORMATION World’ has also been implemented. While the

TECHNOLOGY (DIT) construction of the ‘Enterprise Computing and
IX.38 During the year, enhancements in Cybersecurity Training Institute’ is under progress
e-Kuber and payment systems were carried out to foster a safe and responsible cyber culture
to meet the evolving business requirements like within the Reserve Bank, 26 training programmes
roll-out of central bank digital currency (CBDC), covering around 753 officers from various locations
reversal of facilities under liquidity adjustment have been conducted till March 31, 2024.
facility (LAF) and making NEFT compliant with IX.40 Further, in line with the Payments Vision
ISO 20022 standards. With the objective of digital Document 2025, and in order to support the global
transformation of work culture in the Reserve outreach and expand the footprint of domestic
Bank, the Department undertook a comprehensive payment systems, a Global Structured Financial
revamp of major internal applications of the Messaging System (SFMS) Hub project was
Reserve Bank, viz., Enterprise Knowledge Portal- initiated. This would further improve the efficiency
Intranet (EKP); SWAGAT (access management of the Reserve Bank’s payment system.
system); Sarthi (electronic document management
Agenda for 2023-24
system); and SAMWAD (video conferencing
system). EKAMEV - identity access management IX.41 The Department had set out the following
(IAM) and mobile device management (MDM) goals for 2023-24:
were also rolled-out during the year to enhance ● The e-Kuber application interface
the cyber security posture in the Reserve Bank. with many important stakeholders
IX.39 Best practices in cyber hygiene have been including Government of India and state
adopted to ensure the security of the Reserve governments needs to be up to date with
Bank’s IT infrastructure, consisting of IT the latest technology architecture to match
applications, systems, networks, devices and the evolving IT and financial landscape.
data, against cyber risks by adopting emerging The e-Kuber has been designated as a
technologies, state-of-the-art tools, and continuous Critical Information Infrastructure (CII)
monitoring of the controls. The Department by the NCIIPC. The upgraded e-Kuber
continues to collaborate with the Indian Computer shall employ latest technologies using
Emergency Response Team (CERT-In) and application programming interfaces
other government agencies like National Critical (APIs), microservices and containers,
Information Infrastructure Protection Centre and was expected to be completed for
(NCIIPC). Based on the advisories issued by implementation in 2023-24 (Utkarsh 2.0)
agencies, inputs from threat intelligence sources, [Paragraph IX.42];
and continuous risk assessment and monitoring, ● The Reserve Bank has initiated the
the security controls are being upgraded on an project to construct a new state-of-
ongoing basis, thus elevating the defence against the-art greenfield next generation data
cyber threats. An extended six-month long cyber- centre to address the capacity expansion
security awareness drive across the Reserve constraints, meet ever-increasing IT
Bank with the overarching theme of ‘Secure Our landscape needs and avoid region

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specific risks. The construction of the data the upgraded currency chest portal for real-time
centre has commenced and shall be in an reporting of CC related transactions.
advanced stage of completion in 2023-24 IX.43 The construction of the data centre has
(Utkarsh 2.0) [Paragraph IX.43]; commenced with the laying of foundation stone by
● The Reserve Bank, in its continuous the Governor, Reserve Bank, on March 22, 2023.
endeavour to update and upgrade India’s The core and shell construction of the data centre
national payment systems, has planned to is in the advanced stage of completion. The project
upgrade the RTGS system. This will include is expected to be completed within the stipulated
improvements in existing functionalities and timeline.
introduction of several new functionalities IX.44 The Department updated and upgraded
supported by the RTGS. The upgraded RTGS system during 2023-24 with new
RTGS will take care of the futuristic functionality like Foreign Contribution (Regulation)
requirements like scalability, enhanced Act (FCRA) code introduction, improved and
security and performance (Paragraph efficient automated message flow, among various
IX.44); and nodes of RTGS. Apart from these, the security
● The Department will be enhancing features of the system have been upgraded in
the internal applications to facilitate a terms of better user management control and
transformation towards digital modes compatibility with latest digital certificates issued
and reducing dependence on manual by the certifying authority, viz., Institute for
and paper-based procedures in day-to- Development & Research in Banking Technology
day work. Continuous improvements in (IDRBT).
Sarthi, a revamped EKP, improved visitor IX.45 The Department undertook a
management system and development comprehensive revamp of the EKP, with the new
of a web interface for regulated entities EKP being a state-of-the-art, interactive and
to submit applications/requests has been collaborative intranet portal with enhanced user
planned, which will help bring about the interface and employee engagement features.
digital transformation (Paragraph IX.45 –
IX.46 With the enhanced access management
Paragraph IX.48).
system christened as ‘Seamless SWAGAT’,
Implementation Status the Department is seeking to implement facial
IX.42 With the vision of providing best-in-class recognition for employee access management
and environment-friendly digital and physical and QR code technology for visitor access
infrastructure, the Department upgraded e-Kuber management system. This technology is presently
to e-Kuber 2.0 with the latest technology. All the being developed on a pilot basis at the Reserve
participants are now using the upgraded version of Bank’s central office building, Mumbai. This is
e-Kuber online portal. The currency management expected to be rolled out gradually in phases,
module has also been upgraded and is in use by based on feedback and user experiences.
various offices of the Reserve Bank. Currency IX.47 The password-less authentication project
chest (CC) holding banks have also started using for internal users of the Reserve Bank was

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implemented in two phases. Phase I enabled handling the CSS funds flow ‘just in time’ from
password-less biometric (face/fingerprint) central government and state governments
authentication for desktop login. Phase II is identity to the beneficiaries. Currently, seven state
access management (IAM) solution christened as governments have been onboarded, and other
“EKAMEV”, a secure single sign-on (SSO) portal state governments are being onboarded.
to enhance user experience and security, while Reversal of Facilities under LAF
accessing the Reserve Bank’s web applications
by its internal users. IX.51 As per the Statement on Developmental
and Regulatory Policies (December 8, 2023), it
IX.48 Continuous enhancements in Sarthi was proposed to allow reversal of liquidity facilities
are also being undertaken to improve the under both Standing Deposit Facility (SDF) and
user experience and a revamped Sarthi 2.0 Marginal Standing Facility (MSF) even during
is under implementation. Sarthi 2.0 will come weekends and holidays with effect from December
out with a host of features, including improved 30, 2023, as simultaneous high utilisation was
user interface (UI)/user experience (UX), observed in both MSF and SDF. This measure
mobile responsiveness, knowledge repository was expected to facilitate better fund management
functionality, and integration with Microsoft Office. by the banks. Accordingly, changes were carried
Major Initiatives out in e-Kuber core banking solution (CBS) for
enabling this. Further, the reversal of liquidity
Central Bank Digital Currency (CBDC)
facilities availed under Automated Sweep-In and
IX.49 CBDC (e₹) has been implemented in both Sweep-Out (ASISO) facility for the transactions
wholesale and retail pilot segments. The use cases over the weekends and holidays were previously
of CBDC are still evolving. The Reserve Bank carried out on the next working day at Mumbai.
introduced another use case in the e₹-Wholesale Changes were also carried out in e-Kuber to
(e₹-W) pilot in October 2023 for facilitating inter- facilitate reversal of these ASISO transactions
bank call money trades using e₹. Presently, the immediately on next day (regardless of whether
existing inter-bank call money trades are settled holiday or not).
using RTGS. However, with e₹-W, banks can
Making NEFT Compliant to ISO 20022 Messaging
settle the call money trades in real time in e-Kuber
Standards
without involvement of RTGS application. Further,
the balances of e₹-W were mirrored with NPCI IX.52 The NEFT system at the Reserve Bank
in real time to facilitate migration of e₹-W to has been migrated and made compliant with ISO
distributed ledger technology (DLT) platform. 20022 messaging standards. The process of
onboarding more than 230 member banks on ISO
‘Just-in-Time’ Release of Centrally Sponsored
20022 messaging standards has already started.
Schemes (CSS) Funds Through e-Kuber
The migration and onboarding of all the member
IX.50 The project of using e-Kuber platform banks is expected to be completed in early 2024.
for releasing funds under CSS by Department of The adoption of ISO 20022 will provide structured
Expenditure, Ministry of Finance, Government and granular data, improved analytics, end-to-end
of India, was implemented, wherein e-Kuber is automation, and better global harmonisation. It

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will also pave the way for interoperability between the pipeline. The Reserve Bank’s private cloud
RTGS and NEFT. provides additional benefits like centralised
Continuous Upgradation of IT and Cyber Security management of servers, scalability, and reduction
in the overhead costs for application hosting.
IX.53 The Department strives to continuously
assess and upgrade the IT security infrastructure Centralised Digital Application Receipts and
to enhance its efficiency and effectiveness of Tracking System
tackling the emergent threats and protect its IX.56 A secured web-based centralised portal
IT infrastructure that caters to critical payment named as PRAVAAH (Platform for Regulatory
infrastructure. Towards this endeavour, the Application, Validation And AutHorisation) has
Department upgraded ‘Security Automation, been developed to simplify and streamline the
Threat Analysis and Response Centre process of submitting applications seeking
(SATARC): Next Generation Security Operation licence/authorisation/regulatory approvals from
Centre (NGSOC)’ with innovative capabilities the Reserve Bank under various statutes/
and additional advancements like security regulations. By end-to-end digitisation of the entire
orchestration, automation and response, user processing lifecycle of applications, it will bring
entity behaviour analytics, extended detection and greater efficiencies into regulatory processes and
response. facilitate ease of doing business for the regulated
IX.54 During the year, the Department further entities (REs). The portal will show time limits for
strengthened its security posture by availing the deciding on the applications/approvals sought
services of an offensive security platform, which and real-time status updates shall be provided to
is used for proactive defence and automatic the applicant. PRAVAAH has been designed with
continuous fine-tuning of multiple security devices/ dynamic form-building capabilities to enable the
software, including policies pertaining to the regulatory departments to easily create/modify the
Reserve Bank’s networks, systems, applications, template of online forms as and when required.
and endpoints. The platform provides security The filled forms along with relevant documents
assessments which simulate real time attack will flow to Sarthi (the Reserve Bank’s internal
scenarios in a controlled environment to identify electronic workflow application), for internal
the security gaps and enable further fine-tuning of processing by the concerned departments.
the systems based on the assessment results. Features for seeking additional information from
the applicants and replying to the applicant will
Private Cloud Infrastructure Augmentation
also be available in the portal obviating the need
IX.55 The Department initiated the process of to send e-mails/letters.
augmentation of its private cloud infrastructure
Revamping of Video Conference
(viz., virtualised compute, memory and storage)
to increase the capacity of the existing clusters IX.57 The Department has undertaken the
and replace servers reaching end of support. The SAMWAD (Secure Audio-Video Meetings With
added capacity will host next generation core Advanced Devices) project under which the
banking solution (CBS) application (e-Kuber 3.0) existing video conferencing (VC) system installed
as well as additional non-payment applications in in the Reserve Bank is being revamped. The

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project entails a uniform, standardised and state- address the capacity expansion constraints,
of-the-art audio-video and VC system across meet ever-increasing IT landscape needs
offices of the Reserve Bank. The revamped and avoid region specific risks. The data
system provides advanced features such as active centre, which is envisaged to cater to the
speaker tracking functionality, native 4K resolution internal needs of the Reserve Bank and its
display units, and capacity augmentation across subsidiary organisations, shall commence
centralised servers for more concurrent meetings. its operations in 2024-25 (Utkarsh 2.0);
The implementation of the project is underway.
● To enhance the security, integrity,
Agenda for 2024-25
and privacy of Indian financial sector
IX.58 The Department’s goals for 2024-25 are data, cloud facility will be set up and
set out below: initially operated by the IFTAS. This
● The Reserve Bank has initiated the cloud facility is intended to be rolled out
project to construct a new state-of-the-art in a calibrated fashion in the medium-
greenfield next generation data centre to term (Box IX.2);

Box IX.2
Cloud Facility for India’s Financial Sector
Indian Financial Technology and Allied Services (IFTAS), confidentiality of data. Accordingly, the Reserve Bank in
a wholly owned subsidiary of the Reserve Bank, has its Statement on Developmental and Regulatory Policies
more than eight years of experience in running its own (December 8, 2023) announced the setting up of a cloud
cloud platform and providing various cloud services. This facility for the financial sector, initially to be operated by
platform was put in place for hosting the projects of IFTAS, IFTAS and later, to be transferred to a separate entity.
the Reserve Bank, and its subsidiaries for SFMS member The proposed cloud platform is expected to be at par in
interface. technology with leading public cloud service providers.
The cloud platform will provide on-demand scalability
As Indian banks and financial entities deal with ever
with clustered high availability, disaster recovery with high
increasing volume of data and look at options of various
recovery time objective (RTO) and recovery point objective
public and private cloud facilities, it becomes imperative for
(RPO), while maintaining high degree of security, integrity
them to carry out a comprehensive business technology
and privacy of data.
risk assessment for the cloud service providers (CSPs)
before availing their services. Moreover, issues such Considering that the cloud platform will cater to the Indian
as enforceability of agreements and adherence to the financial system, a governance framework will be put
global standards, including aspects of storage, integrity, in place for regulatory and security compliances. The
protection, and confidentiality of data have also become framework will also define the onboarding requirements. A
relevant. In such a scenario, the Indian Banking Community cloud vertical as an independent focused operating unit will
Cloud (IBCC), as a one stop solution in terms of expertise be formed within IFTAS with allocation of various teams,
and counsel of an experienced partner to provide support including cloud strategy and governance, cloud architects,
at every step of the process, will be beneficial to banks/ tech admin support teams, cloud operations and alerts
financial institutions (FIs), especially the smaller ones. Such monitoring teams, security teams, finance and accounting,
a cloud will also allay any concerns in respect of jurisdiction sales and marketing, legal and contracting teams. The cloud
and address issues of sovereignty, integrity, protection, and services will be rolled out in a phased manner considering

(Contd.)

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 ANNUAL REPORT 2023-24

the requirements of the banking and financial sector and Phase 2 of the services offerings:
will be done with optimal capacity provisioning.
(a) API Management; (b) Application Performance
Phase 1 of the services offerings: Management; (c) Availability Zone; and (d) Development,
(a) Infrastructure-as-a-service, Platform-as-a-service, Security, and Operations (DevSecOps).
Software-as-a-service; (b) Container-as-a-service; It is expected that the IBCC will be able to set up multiple
(c) Storage-as-a-service; (d) Public Internet Protocol-as-a-
data centres including edge data centres on need basis to
service; (e) Disaster Recovery-as-a-service; (f) Antivirus-
provide the whole range of services as expected from a
as-a-service; (g) Load Balance, Web Application Firewall-
CSP.
as-a-service; (h) Backup-as-a-service; and (i) Vulnerability
Assessment-as-a-service. Source: RBI.

● The Indian Financial Network (INFINET) Hub for cross-border payment messaging
is the communication backbone for the in their local currencies. This may help
Indian banking and financial sector. It India in reducing dependence on other
is a closed user group (CUG) network major trading currencies and may help in
for exclusive use of member banks and foreign exchange management; and
financial institutions. The INFINET runs the ● To support the ‘AatmaNirbhar Bharat’
critical payment system applications such initiative of the country, the Department
as RTGS, NEFT and e-Kuber. INFINET plans to develop the following applications
3.0 seeks to refresh the existing INFINET in-house to reduce external dependencies
2.0 with better technology, bandwidth, (including vendors), besides providing
and overall services. It is proposed to increased flexibility in terms of carrying
be built with the latest software-defined out changes in the system by providing full
wide area network (SD-WAN) technology. control over the source codes:
The features proposed under SD-
o Development of e-Kuber 3.0
WAN include effective load balancing application by Reserve Bank
of the links, voice and video traffic Information Technology Private
optimisation and application aware routing. Ltd. (ReBIT), RBI’s wholly owned
SD-WAN also provides for centralised subsidiary. The development of the
management of the network and zero core accounting platform along with
touch provisioning; government payment module (GPx) is
● The Reserve Bank, in its bid to take the in progress.
Indian Rupee (INR) on global platform at o Developing an alternate messaging
greater pace, has conceptualised a solution system framework to support domestic
wherein India’s domestic messaging as well cross-border financial and non-
system SFMS would be extended through financial message communication. It
a Global SFMS Hub to other countries. would be based on globally accepted
The interested countries can connect their ISO 20022 messaging standards
local messaging system to Global SFMS with functionalities like cross-border

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solution, and letter of credit/bank and settlement systems in the country through
guarantee (LC/BG) message. launch of several initiatives during the year
in line with Payments Vision Document 2025
o Develop an alternate mechanism for
across anchor goalposts of integrity, inclusion,
digital payment systems, which would
innovation and internationalisation. During
offer all the functionalities currently
the year, possibilities were also explored for
being offered by existing CPS along
increasing the global footprints of UPI and RuPay.
with other advanced functionalities.
Besides, enhancements in e-Kuber and payment
The system would support retail and
systems, a revamp of major internal applications
high value payment services, bulk
of the Reserve Bank was also undertaken. Best
message support and low value fast
practices in cyber hygiene have been adopted
payment services. It would provide
to ensure the security of the Reserve Bank’s IT
options like thick client and open
infrastructure. The initiative towards setting-up of a
API solution to connect to CPS. It is
cloud facility has commenced to enhance security,
also proposed to offer this in-house
integrity, and privacy of Indian financial sector.
developed comprehensive system to
Going forward, a state-of-the-art greenfield next
other countries as well.
generation data centre would be operationalised
4. CONCLUSION to address the capacity expansion constraints,
IX.59 The Reserve Bank continued its meet ever-increasing IT landscape needs and
efforts to develop state-of-the-art payment avoid region specific risks.

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