RBI issues framework for geo-tagging of payment system touchpoints: What it means

In order to make digital payments safer, the Reserve Bank of India (RBI) on Friday released the framework for geo-tagging of payment system touchpoints to ensure proper monitoring of the availability of payment acceptance infrastructure.

"RBI is focused on deepening of digital payments and providing inclusive access to all citizens of the country," the central bank said in a statement.

''To achieve this objective, it is imperative that robust payment acceptance infrastructure is available and accessible across the length and breadth of the country,'' it said.

Monitoring of geo-tagging of payment system touch points will ''support policy intervention to optimise distribution of payment infrastructure,'' the central bank said.

What is Geo-tagging? 

Geo-tagging refers to capturing the geographical coordinates (latitude and longitude) of payment touchpoints deployed by merchants to receive payments from their customers. Geo-tagging has various benefits, such as, provide insights on regional penetration of digital payments; monitor infrastructure density across different locations; identify scope for deploying additional payment touch points; facilitate focused digital literacy programmes. Policy interventions for realising the above benefits will be facilitated by the information thus collected.

Digital payment transactions carried out by customers using payment touch points use two broad categories of physical infrastructure. They are:

-Banking infrastructure comprising bank branches, offices, extension counters, Automated Teller Machines (ATMs)?Cash Deposit Machines (CDMs), Cash Recycler Machines (CRMs), micro-ATMs used by Business Correspondents (BCs), etc.

-Payment acceptance infrastructure comprising Points of Sale (PoS) terminals, Quick Response (QR) codes deployed by banks / non-bank Payment System Operators (PSOs), etc.

In recent years, the payment ecosystem in the country has witnessed rapid developments with a bouquet of payment systems, platforms, products and services being made available for consumers.

Digital payment transactions carried out by customers using payment touch points use two broad categories of physical infrastructure -- banking infrastructure (like bank branches and ATMs), and payment acceptance infrastructure (like PoS and QR codes).

As per the framework, banks/non-bank PSOs (Payment System Operators) would capture and maintain geographical coordinates for all payment touch points.

Also, geo-tagging information in respect of PoS terminals and paper-based/soft QR codes shall be submitted to RBI, it said.

In October 2021, RBI had announced that it would prescribe a framework for geo-tagging of physical payment acceptance infrastructure.