The Reserve Bank of India has said in reply to an RTI query that it does not readily have information about failed transactions on various payment platforms in FY18-19. The RTI query, filed by Srikanth Lakshmanan, asked the central bank for the number of failed transactions reported by all licenced payment system operators for each authorised payment system, and the number of failed transactions on its own platforms – NEFT and RTGS. The bank said in its reply that collecting such information would “disproportionately divert” its resources. The RBI’s reply is worrying as the number of failed transactions can indicate how well or poorly a particular payments system is functioning. Without this information, the RBI cannot set specific targets for reducing the number of failed transactons and improving payment platforms.
In fact, a committee appointed by the RBI to strenghthen the digital payments ecosystem said in its report, published on Monday, that RBI must monitor failed transactions – in particular, the technical decline rates and business decline rates – and must must also ensure that the operators present a plan to bring down these failure rates by 25% every year.
. @RBI does not have data on failed transactions and has admitted that it needs to collect / compile data regarding transaction failures and it is "disproportionate" use of its resources.@nsitharaman Mam, For your kind attention. pic.twitter.com/J6odtajhtk
— Srikanth ஸ்ரீகாந்த் (@logic) June 4, 2019
Nandan Nilekani panel’s recommendations to the RBI
A panel headed by Nandan Nilekani had, in May, submitted the RBI a set of recommendations to improve the infrastructure around digital payments in India. The RBI recently released its report on the same that includes the recommendations made by Nandan Nilekani and his team. Under that, recommendation number12 reads: The regulator must monitor failed transactions – in particular, the technical decline rates and business decline rates. The regulator must also ensure that the operators present a plan to bring down these failure rates by 25% every year.