National Payment Research Articles

Digital Rupiah as An Alternative Digital Transaction in Indonesia

Digitalization in the financial industry revolutionized the transaction system with the emergence of Cryptography-based Digital Currencies. It has recently evolved into digital currencies issued by central banks, known as Central Bank Digital Currency (CBDC). Bank Indonesia responds by developing a plan to release Digital Rupiah as part of the digital transformation initiative in the national payment system. This study aims to determine the authors' interest in discussing Indonesia's CBDC as seen through article publication trends. This research uses the systematic literature review (SLR) method. The results show that there is an increasing trend in the publication of articles on Digital Rupiah. The published articles discuss Digital Rupiah from various sides such as legality, implementation mechanism, challenges opportunities and impacts, to its potential implementation.

Constructing a Composite Index: Assessing Digital Financial Inclusion in India

Financial inclusion has been an essential area of focus of the modern-day government. Financial inclusion means providing financial services to each section of society that demands it at an affordable cost. Nowadays, along with the efforts made by traditional financial institutions, the amalgamation of digital technology with finance, called digital finance, has significantly improved the base and coverage of financial inclusion. In India, the coverage of financial services has expanded after the introduction of the JAM (Jan Dhan- Aadhar- Mobile) trinity and the Unified Payment Interface (UPI). The increased internet penetration in the country has also expanded the scope of digital financial services. During demonetisation and the Covid-19 pandemic, digital financial services became a saviour for people and got a boost in its growth in India. The focus of this paper is to measure the level of digital financial inclusion in India. We have constructed a Digital Financial Inclusion Index for India using Principal Component Analysis (PCA). We have included the ‘Access’ (covers the supply side) and ‘Usage’ (covers the demand side) dimensions for this. The data from RBI and the National Payments Corporation of India (NPCI) has been used for the study. The study stresses the increasing role of digital finance in financial inclusion in India. This will guide the policy formulators to take key steps to improve the financial inclusion levels to achieve the goal of sustainable economic growth.

BANK INDONESIA’S ROLE IN MITIGATING ISSUES OF MONETARY ECONOMIC SOVEREIGNTY AND HUMAN RIGHTS

Bank Indonesia has strategic authority to maintain the stability of monetary conditions in Indonesia through monetary policy. One concern is the risk is the emergence of shadow banking where fintech companies channel funds from the public. In the long term, this situation can impact the operational conditions of the banking system. One of Bank Indonesia’s mandates is to supervise the provision of services by fintech companies (peer-to-peer lending) to align with the national financial and payment vision and mission, including establishing interlinks between fintech and banking to avoid risks posed by shadow banking. Interlinking works if each party is willing to share customer data. If Bank Indonesia requires fintech companies to share customer or user data, it must be based on clear and specific legislation. This is crucial because user data falls under personal data, and the state must guarantee the protection of its citizens’ personal data. This article discusses the importance of legislation regarding the legitimacy of Bank Indonesia’s authority to regulate interlinks between fintech companies and Bank Indonesia, as well as banking institutions, to avoid shadow banking. The article employs a normative legal approach using literature and legal sources.

Цифровой рубль в финансово-правовом пространстве

Currently, the issues of financial and legal regulation of relations on the issue and circulation of the digital ruble are becoming particularly relevant. This is due to the need for the Russian Federation to resist sanctions that apply to the sphere of international settlements and make them difficult. The study of the financial and legal nature of the digital ruble, the financial and legal mechanisms used in regulating relations, the subject of which is the digital ruble, will contribute to solving the problem of legal support for international settlements in the context of increased sanctions pressure and the possibility of using the digital ruble for these purposes. The conclusion is formulated that Russia currently has prerequisites for further implementation of the digital ruble, including the sphere of international settlements, as well as technological capabilities. This process will require an audit of Russian legislative acts regulating settlement and payment relations, including cross-border ones, and making comprehensive changes to related legislation: currency, budget, tax, AML/FT legislation and the national payment system.

Exploring the Impact of Online Payment on Consumer Behaviour: A Case Study of Nepal

The emergence of online payment has completely changed how consumers and businesses interact on a global scale. Online payment refers to payment that are made for goods or services that are ordered online or offline and are initiated using internet. Understanding how digital financial services affect consumer decision-making is becoming more and more crucial, especially in developing nations like Nepal. In Nepal, Nepal Rastra Bank (NRB) is dedicated to the security and effectiveness of Nepal's National Payments System (NPS) in recognition that payment systems are an essential component of every nation's financial system and are essential for its soundness, as well as for the execution of monetary policy and the growth of capital markets. The rise in e-commerce and mobile commerce activities in recent years can be attributed to the widespread use of mobile devices and internet connectivity. Research has indicated that the incorporation of electronic payment systems might have a noteworthy impact on consumer conduct, providing convenience and effectiveness during transactions (Jakhiya et al., 2020). Given the dynamic nature of Nepal's digital infrastructure, analyzing the differences in the adoption of these technologies and the ensuing shifts in customer behaviour might yield insightful information.

Receipt of parenting, disability, unemployment, and other income support payments in persons aged 16 to 33 years – the associations with child maltreatment

BackgroundChild maltreatment (CM) is a major public health concern with life-long effects. Its impact on income support has rarely been studied. ObjectiveTo examine the association between CM and receipt of income support payments and the budgetary impact for persons 16 to 33 years. Participants and settingA South Australian birth cohort, born 1986 to 2004 (n = 339,411). MethodsWe linked child protection (CP) administrative records with national welfare payment records, ending March 2020. Receipt of income support payments and mean payment amounts were described by CP contact (adjusted for child and family attributes). Budget impact was modelled at the national level. ResultsAdjusted odds ratio (AOR) for receipt of any income support payment was 3.01 (2.95–3.07) for individuals with any CP contact versus no CP contact. Among those receiving any payment, adjusted annualised mean benefit payment was $3754 (US$1446) among individuals with no CP contact, $6262 (US$4,307) in persons with any CP contact, and $9,747 in persons who'd been in OOHC. Cumulative payments modelled from age 16 to 33 years totalled $38,570 (US$26,652) for individuals with no CP contact, and $181,743 (US$125,003) for individuals who'd been in OOHC. Modelled for the Australian population to age 33, the extra cost associated with CP contact added 39 % to the government income support budget. ConclusionCM is strongly associated with receipt of income support payments. Investment in effective preventive and protective strategies for CP involved children could address this core social determinant of health, while providing budget savings.

Features of electronic money and financial technology development

The development of financial technologies at the present stage leads to the spread and active use of electronic money in national payment systems, which provide a convenient and secure way to carry out fast financial transactions without the need to use cash. Due to this main advantage, the use of electronic money has become widespread in a short period. Digital payment instruments provide users with the flexibility and access to make transactions anytime and anywhere, but at the same time, the development of electronic money circulation is also associated with some problems and the need to improve their regulation. The era of new payment technologies has presented us with new challenges related to various transactions between entities. The development of trade, including via the Internet, has led to the search for new, fast and effective means of payment, in particular when it comes to paying for goods and services. Nowadays, more and more people are abandoning the use of cash in favor of electronic money, which leads to the popularity of the concept of electronic money. The purpose of the article is to determine the impact and features of new technologies, such as blockchain, digital wallet and cryptocurrency, on the functioning of electronic money in the national payment system. The subject of the study is electronic money and payment technologies used in the national payment system, forming a system of electronic economic relations.

Legal regulation of the monetary system of the Russian Federation in the digital economy: financial and legal problems

The article discusses current problems of digitalization of the monetary system of the Russian Federation. A conclusion is made about the place and content of the sub-growth of the rights of the monetary system in the structure of financial law. It is argued that digitalization does not change the essence of financial relations, the essence of money as a financial and legal category, it only gives them an electronic form. The author’s assessments of the legal nature and qualifying features of new financial payment instruments that are a response to the challenges of the digital economy are given: electronic money, digital currencies, digital ruble. It is argued that they are subtypes of non-cash money circulation along with classic bank money. Proposals for improving the current legislation on the national payment system are substantiated in terms of systemic legal regulation of all types of digital forms of monetary circulation.

India's Digital Revolution: UPI, Payment Leaders, Future Insights Top of Form

In a county of snake to INDIA is on the moon. INDIA ’s massive growth has shocked the world. This research is based on the in-depth study of one of the greatest achievements of INDIA in digital payment through UPI (unified payment interface). The INDIA online payment sector is undergoing for reaching range is digital payment capturing a sizeable slice of take in recent year. The Reserve Bank of INDIA and its nodal agencies like NPCI are working hard to make digital payment INDIA goal reality nearly one billion card and more than 2 billion prepaid payment instrument such as online wallets mobile application, e wallet and digital modalities have pushed INDIA into one of world fastest growing and largest digital payment ecosystem. In fact, an exponential increase in Internet infrastructure boosted e commerce. unified payment interface popularly known as UPI is regarded as revolutionary payment solution in the market for facilitating retail digital payment. To achieve paperless and cashless economy UPI is potentially innovative way of transferring fund using a virtual payment address established by a national payment corporation of INDIA. Hence, it is needed to be assessed for its potential to contribute towards a shipment of digital economy. Keywords: UPI, DIGITAL, GROWTH, TECHNOLOGY, INFRASTRUCTURE, FUTURE, ECOSYSTEM.

A Digital Ruble Platform as an Object of Financial and Legal Regulation

The paper examines the issues of legal regulation of a digital ruble platform, which is considered as an element of the national payment system, information system, and a set of financial technologies. The author analyzes the legal nature of the information platform as a general concept for varieties of digital platforms. The conclusion is made about the need to consolidate the legislative definition of the information platform. The paper also examines the legal status of the platform operator, platform participant and platform users. It is concluded that the platform operator has a special functional function, since he is solely responsible for any processes related to the operation of the digital ruble platform. The author also focuses on the problem of blocking remote banking services due to non-compliance with legislation on combating money laundering and terrorist financing (AML/CFT). It is assumed that the judicial practice concerning challenging the blocking of remote banking services will not change due to the introduction of the digital form of the national currency. It is pointed out that there are no agreements on interaction between the Bank of Russia and Rosfinmonitoring in terms of control measures under AML/CFT in the circulation of the digital form of the national currency, since the relevant risks have not been examined. It is concluded that cross-border money transfers in the form of digital national currencies are promising, but the author determines a number of problems related to the technical feasibility and legal regulation of the processes of opening accounts for non-residents and transferring funds.

Digital Financial Services (DFS) And Productivity of Indian Banking Sector - Empirical Evidence Using Malmquist Productivity Index and Panel Data Regression

Purpose: The aim of this study is to examine the impact of Digital Financial Services (DFS) on the productivity of banking sector in India. Theoretical framework: This research considered various digital banking services offered by bank and how it affects the actual bank performance in terms of productivity, by adopting a two-stage model i.e., Malmquist Productivity Index (MPI) and panel data regression. Design/Methodology/Approach: The empirical study was based on eight-year balanced panel data from 2012 to 2020. The sample of the study consists of forty-four commercial banks from India. This study is completely based on secondary data collected from the website of the database of the Indian economy and the National Payment Corporation of India (NPCI). To achieve the research goals, a two-stage approach has been used. Initially, Malmquist Productivity Index (MPI) was employed to estimate the total factor productivity changes. In the second phase, panel regression analyses were used to study the impact of Digital Financial Services (DFS) on bank productivity. Findings: The findings show that the Digital Financial Services (DFS) variables such as mobile banking, online banking, Automatic Teller Machines (ATM) and Point of Sale (POS) transactions are significantly improved the productivity of the Indian banking industry. Research, Practical & Social implications: The study addresses the issues such as identifications of factors affecting the productivity of banks including Digital Financial Services (DFS). In the world of digital revolution, it analyses whether bank can retain, continue and enhance their performance by offering modern product and services to their customers. Originality/Value: This article has conducted extensive analyses of Digital Financial Services (DFS) and banks' productivity. The authors also provide suggestions for the policymakers for the future implementation of digital banking services.

Impact of Soundbox by Third Party Application Providers (UPI) on Retailers, with Special Reference to Greater Chennai Corporation

Before the advent of UPI, payments primarily relied on debit and credit cards, proving advantageous for medium-scale business retailers while disadvantaging small-scale or micro retailers using cash due to the high cost of POS machines. The introduction of the UPI digital payment system by the National Payments Corporation of India in 2016 marked a significant boon for customers and retailers of all types. Despite its benefits, some retailers hesitated due to perceived authenticity issues in receiving payments. However, since 2019, the third-party application provider Paytm revolutionized UPI adoption by proposing the installation of a soundbox. This innovative addition led to increased UPI utilization by retailers, driven by enhanced security, user-friendliness, simplified transactions, and lower monthly rental costs. This paper explores the impact and role of the soundbox post-installation by third-party application providers, examining its merits, demerits, and gauging retailers' perspectives on this transformative technology.

Clinical Significance and Resource Burden of Double Duct Sign in Non-jaundiced Patients.

Aim The study aims to determine the incidence of malignancy at presentation and subsequent risk of malignancy (at 12 months follow-up) in a cohort of patients with double duct sign (DDS) on cross-sectional imaging but no visible stigmata of jaundice. The study also correlates malignancy with liver enzyme dysfunction and estimates the resource burden incurred during the investigation of these patients. Methods A search for the key term "double duct sign" was undertaken in the radiological database of a tertiary hepatopancreatobiliary (HPB) centre between March 2017 and March 2022. Radiological reports, clinic letters, blood results, and multidisciplinary team meeting (MDT) outcomes were reviewed during this period and at one year. The national tariff payment system was reviewed to identify tariffs for different investigations required for the cohortand to calculate the total cost incurred. Results Ninety-seven patients with DDS were identified. Sixty-four patients (66%) had a normal bilirubin (0-21 µmol/L) at presentation and were included in the analysis. Seven patients (10.9%) were diagnosed with malignant peri-ampullary tumours, and 21 (32.8%) were diagnosed with benign diseases. In 34 patients (53%) with DDS, the underlying cause remained uncharacterised. Most patients had mild abnormalities of liver enzymes, but two patients (4.3%) were diagnosed with malignant peri-ampullary tumours despite having normal serological values. Patients who had a benign diagnosis and/or who had cancer excluded without a definitive diagnosis did not go on to develop a malignancy at 12 months follow-up. However, in those patients where the underlying aetiology could not be characterised, extended surveillance was required with a total of 80 MDT discussions and multiple surveillance scans (103 CT and 65 MRI scans). Twenty-six patients underwent endoscopic ultrasound (EUS) with three patients requiring more than one EUS examination (29 investigations in total). The cost of these investigations was £38,926.89. Conclusion This study confirms that DDS even in patients without clinical jaundice or with normal liver enzymes requires careful investigation to exclude malignancy despite the resource burden this entails. This supports previously reported results in the literature, and despite the increased use of cross-sectional imaging, DDS remains a clinically significant finding. Large cohort risk stratification studies would be useful to determine clinical urgency and allow the appropriate allocation of resources.

Cross-Group Network Effects of National Payment Gateway Implementation: Evidence from Indonesia’s Debit Card Industry

We use Indonesian debit card data Year 2015-2020 to propose a hypothesis of the existence and intensity of network externalities in Indonesia's two-sided payment card market. We find cross-network effect does not fully occur in Indonesia since only the number of electronic data capture (EDC) installed influenced the average transaction/card and average transaction/EDC. Even after regression analysis, we found that a number of installed EDCs significantly negatively affected average transaction/ EDC. From these results, we can propose that Bank Indonesia prioritizes increasing merchant acceptance rather than increasing the number of payment instruments issued.

Adoption of UPI and Implementation of UPI-ATM in India: A Logit Analysis

Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). It was introduced to facilitate easy, quick, and secure online payments between banks. The Government of India is going to introduce UPI-ATM services after successful progress of UPI transaction. While challenges exist, such as limited digital literacy and connectivity issues, several factors have contributed to the adoption of UPI transactions. The present work finds the gap between rural and urban, male and female and technological knowledge and awareness in performing digital transactions. With the help of logit analysis, it has been observed a successful future of UPI-ATM services though there exists differences in many dimensions.

On the issue of contour transformation of international settlements in the context of increasing geopolitical risks and fragmentation of the global financial and economic area

Subject. Given the increasing geopolitical risks, new approaches are needed to organize the contour of the international payment system, which ensures safety and reliability of international settlements Objectives. The article aims to assess the approaches of the Committee on Payment and Settlement Systems to creating models of international payment systems, propose a model for organization of international settlements for the Russian Federation, identify the specifics of the existing models of national payment systems of the Russian Federation and PRC for organization of interaction within the framework of the international payment system, evaluate prospects for joining the international payment system of other BRICS countries. Methods. The study employs general scientific methods. Results. Based on the specifics of restrictions on international operations of residents of the Russian Federation, the optimal solution to the problem is to create a closed international payment system on the basis of the payment system of the Bank of Russia, and gradually connect payment service providers from friendly jurisdictions to it, the most promising of which is the Chinese payment system CIPS. Creating a separate international payment system based on Peer-to-Peer type payment infrastructures, using digital currencies of central banks of BRICS countries is a promising model of the organization of international settlements. Conclusions. Building a closed international payment system on the basis of the Bank of Russia's payment system will enable to significantly overcome the existing problems, provide Russian companies and banks with a reliable and safe settlement mechanism for foreign trade and financial transactions.

How do hospitals respond to payment unbundling for diagnostic imaging of suspected cancer patients?

Payments for some diagnostic scans undertaken in outpatient settings were unbundled from Diagnosis Related Group based payments in England in April 2013 to address under-provision. Unbundled scans attracted additional payments of between £45 and £748 directly following the reform. We examined the effect on utilization of these scans for patients with suspected cancer. We also explored whether any detected effects represented real increases in use of scans or better coding of activity. We applied difference-in-differences regression to patient-level data from Hospital Episodes Statistics for 180 NHS hospital Trusts in England, between April 2010 and March 2018. We also explored heterogeneity in recorded use of scans before and after the unbundling at hospital Trust-level. Use of scans increased by 0.137 scans per patient following unbundling, a 134% relative increase. This increased annual national provider payments by £79.2 million. Over 15% of scans recorded after the unbundling were at providers that previously recorded no scans, suggesting some of the observed increase in activity reflected previous under-coding. Hospitals recorded substantial increases in diagnostic imaging for suspected cancer in response to payment unbundling. Results suggest that the reform also encouraged improvements in recording, so the real increase in testing is likely lower than detected.

КЛАСИФІКАЦІЯ ПЛАТІЖНИХ СИСТЕМ В ЕЛЕКТРОННІЙ КОМЕРЦІЇ

The article examines the payment systems used in the world and in Ukraine, their features and components, existing varieties. It has been proven that payment systems based on electronic money include: payment systems based on smart cards; softwarebased payment systems operating on the Internet; payment systems based on mobile communication networks. The existing classifications of payment systems are given according to various characteristics: by the method of execution, by the type of operation, by the form of ownership, by the territory of operation, by the degree of residency of the participants, by the volume of payments made, etc. The article, based on its own long-term experience of working with various electronic payment systems, offers its own classification of payment systems by the scope of coverage: a) global payment systems; b) local (national) payment systems. The main global payment systems of the world and local payment systems of the United States, Canada, Great Britain, the countries of the European Union and Ukraine are indicated. A general scheme of the entire system of electronic payments has been built. The mechanism of making payments through LiqPay, WISE and PAYONEER payment services and the features of the functioning of these payment systems are described. The nuances of the acquiring payment transaction processing process, as well as the procedure for introducing an international bank account number (IBAN) in Ukraine, were traced and indicated. Facilitation of greater integration of the Ukrainian payment space with the European one due to savings on bank commissions and speed of operations was revealed. The dependence of the development of electronic commerce on the perfection, volume and convenience of payment systems is singled out.

A study on awareness and adoption of unified interface payments in city union bank

UPI stands for Unified Interface Payments, which is used as a payment gateway to send and receive funds from anywhere, anytime, to other verified UPI accounts or to bank accounts using the unique VPA allocated to the UPI account of City Union Bank. City Union Bank's UPI is known as BHIM CUB e-wallet UPI. VPA is the Virtual Payments Address allotted by providing a registered mobile number or the account number of a valid savings or current account, along with the IFSC code. UPI was initiated by the National Payments Corporation of India (NPCI) and is regulated by the Reserve Bank of India (RBI), the central bank of India. Customers can instantly send and receive funds in real time, similar to IMPS funds transfer technology. In addition to its real-time fund transfer capabilities, UPI has revolutionized the digital payment landscape by providing a seamless and secure transaction experience. The integration of UPI into City Union Bank's financial ecosystem not only facilitates swift and secure peer-to-peer transactions but also reinforces the commitment to advancing India's digital financial infrastructure. The widespread adoption of UPI underscores its pivotal role in promoting financial inclusion and catalyzing the transition towards a cashless economy.

Публично-правовые и частно-правовые начала в регулировании цифровой валюты

Introduction. The article discusses issues of interdisciplinary regulation of centralized digital currencies issued by central banks. Attention is paid to the public legal and fair principles of digital currency of the Central Bank. Materials and Methods. The theoretical basis was formed by scientific publications of domestic and foreign authors on research issues. The study is based on the analysis of legal provisions of financial and civil legislation that determine the legal regime of the digital ruble. The formal legal method, as the main method of the research, made it possible to reveal the content of the intersectoral legal nature of digital currency. Analysis. The issues of the legal nature of the Central Bank digital currency are explored. Close attention is paid to the provisions “On the Digital Ruble”, concentrated in the norms of public and private law. It is noted that the lack of a clear conceptual apparatus causes difficulties in the interpretation of basic categories. The dual legal nature of the digital ruble is substantiated. This duality is manifested in the fact that the digital ruble is an object of financial law, as a national digital currency issued by the Bank of Russia, on the other hand, the obligatory nature of the digital ruble, reflected in the provisions of private law and the Federal Law “On the National Payment System”. Results. Central bank digital currencies (CBDCs) are being considered or are in the process of being implemented by many central banks around the world. Despite the importance and potential consequences of such dramatic changes in national currencies, many uncertainties remain.