RBI calls for preventing money-laundering through payment systems

On Thursday the Reserve Bank announced the necessity to ensure the integrity of the payment and settlement systems against money-laundering and financing of terrorism in addition to the advancement of technology and payment mechanism. The systems need adequate firewalls to be put in place to manage the operational aspect of the system. 

At the Payment and Settlement Systems seminar, organized by the RBI and Bank for International Settlements, D Subbarao, Switzerland RBI Governor, stated that the challenge "is to ensure the integrity of these (payment) systems against money-laundering and financing of terrorism", though the system of retail payment has evolved in India, the country is facing challenges with continuous advancement of technology.

According to the governor’s opinion it is also important to ensure the availability of an efficient, low-cost payment system for transfer of funds. RBI has also started processing payment systems authorization.