Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar on Monday urged the industry to make the pricing of financial products and services transparent to minimize the risks of mis-selling.
Speaking at an event organized by the National Council of Applied Economic Research (NCAER) think tank, he said that there is pricing even in the case of free services.
Citing an example of such an opaque arrangement, Sankar said that product bundling in the financial sector is one such arrangement.
Bundling tends to favor the seller of such a product over the consumer, he said, adding that “when bundling and issues like this arise, I think regulators need to be more attentive to selling opportunities. and misuse”.
The Deputy Governor said the remarks he made are personal and not of the RBI in the interest of free and fair debate related to education and investor protection in the banking industry.
“The industry also needs to make pricing transparent whenever you price your services and keep pricing separate between the multiple services you sell,” he said.
Observing that the digital payments industry has not yet entered its teenage years, Sankar said it has become a global leader in certain areas while evolving.
Digital payment in India gained momentum after 2010.
Noting that there is huge potential for the growth of digital payments in India, he said there is a need to develop an ecosystem in such a way as to reassure all citizens that their money is safe in the online system.
The RBI has taken many steps to advance digital payment in the country, he said.
Earlier this year, the central bank unveiled a Composite Digital Payments Index (DPI) with March 2018 as the baseline to capture the extent of digitalization of payments across the country.
The RBI-DPI includes five broad metrics that measure the depth and penetration of digital payments in the country over different time periods.
The parameters are payment facilitators (weighting 25%), payment infrastructure demand factors (10%), payment infrastructure supply factors (15%), payment performance (45%) and customer orientation (5%). ).
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