Article Preview
TopIntroduction
We are living in the digital world driven by mobile phones that are sophisticated enough to act as a computer (Hutchesson et al., 2015; Kenney & Gortmaker, 2017). Collaboration, calling, and payment everything can be initiated with the help of mobile phones (Martínez-Cagigal et al., 2019). Nowadays, banks are carried in mobile phones. Transaction related to bill payment, transfer of fund and monthly installment payment can well be initiated with the help of mobile phones. In addition, apps related to wallet remains installed that can also be used for the payment. Equipped with smart phones, deep internet penetration, provider’s offers and the government support are the key drivers encouraging the mobile based digital payment.
Digital payment based methods are widely used across the developed nations, and have drawn the attention of users, providers and regulators for a long time (Asokan et al., 2000). Developed countries, such as Norway, Japan, and Australia, are the leading countries relying immensely on digital payments. In some of the developed countries, usage of digital payment is reaching towards the optimum level. Countries such as Switzerland are reaching towards zero currency usage during payments (Singh, 2019). Tax evasion, crime control, and curb in parallel economy are some of the advantages of digital payment (Armey et al., 2014; Immordino & Russo, 2018). In addition, usage of digital payment leads to the growth in GDP. Digital payment is used in a range of industries that includes hospitality, medical, retail industry to name a few (Gupta et al., 2018; Hsieh et al., 2008; Rita et al., 2018). Digital payment is being promoted in developing countries, particularly in emerging economies (Hsieh et al., 2008). Owing to the benefit offered, this method of payment enjoys wide support from people and government across the world (Gichuki & Mulu-Mutuku, 2018). According to a prediction, digital payment will touch almost the entire population by the end of 2025 (Gichuki & Mulu-Mutuku, 2018).
To introduce this new payment instrument, Reserve Bank of India popularly known with its abbreviation ‘RBI’ acts as a chief regulator, advisor to the government of India, and policy formulator. In order to standardize the banking operations, RBI issues the standard operating procedures for the compliance at central level. All the scheduled banks irrespective of their management including private or public are bound to comply with the policies and guidelines circulated by RBI. In addition to payment instruments, it also deals with the financial fraud that happens in banks and the other financial sector. Advisory on security measures and standard operating procedures are issued from time to time.