CUTS Centre for
Competition, Investment & Economic Regulation (CUTS C-CIER) is
implementing a study on ‘Competition Assessment in Digital
Payments Infrastructure Sector’. The study intends to understand
and analyse the competition and regulation of infrastructure/
technology providers in the digital payments space.
The Government of India is undertaking several initiatives to
promote digital payments and move from cash heavy to less cash
society. Some of its initiatives include waiver of service
charge levied on online payments made to the government,
increasing transparency in the rates charged to merchants in
case of debit/credit card transactions etc.
The National Payments Corporation of India is a premier
organisation facilitating digital payments through providing
infrastructure and technological back-end. Some of its services
include Unified Payments Interface (UPI), Immediate Payment
Service (IMPS) and Bharat Bill Payment System (BBPS).
Competition increases efficiency and reduces costs, resulting in consumer welfare. Consequently, it is necessary to understand competition and regulation in digital payments infrastructure sector in India, and highlight related impediments to optimal competition in the sector.