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The Reserve Bank today released a draft technical report on making payment system effective.
"The objective of an effective payment system is to ensure a safe, secure, efficient, robust and sound payment system in the country," RBI said in the report on 'Enabling Public Key Infrastructure (PKI) in Payment System Applications'.
RBI has kept suggestions in the report open for public comment till February 28.
There are various PKI-enabled electronic payments systems introduced by RBI such RTGS, NEFT, CBLO, Forex Clearing, Government Securities Clearing, and Cheque Truncation System (CTS).
In volume terms, these systems contributed 25.1 per cent whereas these systems contributed 93.7 per cent share to the total number of payment transactions carried out in the year 2012-13.
"Whereas non-PKI enabled payment systems contributed 75 per cent in volume terms but only 6.3 percent in value terms in the year 2012-13," the report said.
Of the non-PKI enabled payment systems, MICR Clearing and non-MICR clearing contributed 37 per cent and 10 per cent in volume terms and 69 per cent and 25 per cent in value terms.
"In order to ensure a safe, secure payment system in the country and to ensure legal compliance, digital technology, such as PKI may be used," the report said.
The report also highlights, among other things, security features in existing payment system applications and feasibility in implementing PKI in all payments system applications.
The report said that the banks may carry out in phases PKI implementation for authentication and transaction verification.
The report said the issuing bank will need to convert the older credit or debit cards with the magstrip into EMV chip and pin enabled ones.
