Payment systems in India: Current challenges and opportunities

Abstract

This paper discusses the challenges and opportunities present in the SEPA project, in reference to a Financial Times sponsored conference on `Payments Transformation'. It suggests a review of the Indian payments markets to pick up possible principles for outlining policies, and shares key developments in the Indian payments markets which has been key to the growth in the Indian remittances market. Possible trends in the Indian market which can drive growth in the remittances market, such as financial inclusion, payment solutions and low-cost access options, are also highlighted. The implications of these trends are taken forward to summarise certain principles in pricing, outsourcing and open architecture which can be studied by the European Payments Council to take advantage of key demographic shifts in the labour markets and create the environment for a new horizon in consumer remittance payments.