There is a need for a relook at Payment and Settlement Systems Act as technology is changing at a very fast pace compared to legislation, Principal Adviser to Niti Aayog Ratan P Watal said.
He said there has been a rise in digital payments following the demonetisation of higher currency notes in November 2016.
“There has been growth momentum in volume and value terms in digital payments after demonetisation… Whether you see RBI or MEITY data, its much better than it was prior to 2016,” he said at an event organised by industry body Ficci.
He said however that only in 15 states, higher volume payments are digitised.
Further, Watal said the Goods and Services Tax (GST) regime, rolled out in July last year, will have huge impact on digital payments as it matures.
He further said: “There are technological changes happening around, so you have to also start looking legislations (Payment and Settlement Systems Act)
“The regulation should be such that it should allow new technology to come in very quickly. Technology also changes at a very faster pace than legislation.”
Prime Minister Narendra Modi on November 8, 2016 had announced demonetisation of Rs 1,000 and Rs 500 notes in a bid to crack down on black money, fake currency and corruption.