RBI’s HPDM or, the Har Payment Digital Mission

RBI’s HPDM or, the Har Payment Digital Mission

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March 26, 2023

The Reserve Bank of India (RBI) recently unveiled the “Har Payment Digital” as an initiative to encourage digital payment for every Indian. The programme was started during the Digital Payments Awareness Week (DPAW) 2023 and its objective is to add new users and reinforce the convenience and ease of digital payments. While observing 75 years of independence, the programme also involves RBI to adopt 75 villages and convert them into digital payment-enabled villages. The villages will be adopted by payment system operators.

About & Objectives - Under HPDM, Payment System Operators (PSOs)* will take up the villages spread within the country and organize camps in them to onboard merchants and improve awareness regarding digital payments. Besides, as of February 2023, there are 67 PSOs under various categories such as retail payments organisations, card payment networks, ATM networks, prepaid payment instruments, etc.

*PSOs are authorised entities of RBI who can install and run a payment system.

Significance - The campaign by RBI seeks to improve the convenience and ease of digital payments and help new consumers join the digital initiative. Bank and non-bank PSOs are planning different types of campaigns to focus on the available digital payment mediums. It will further support and encourage acceptance of digital payments within India.

Some FAQs on HPDM

1. Who is promoting Mission HPDM?

PSOs and banks are promoting HPDM to focus on the different available payment mediums. The regional offices of RBI will also popularize the use and acceptance of digital payments by way of Jan Bhagidari programmes as part of the mission.

2. What is the relevance of HPDM?

As per a survey done by RBI, digital payment is done by only 42% citizens while awareness is there for the same amongst 35%. However, there is no awareness for digital payment amongst 23% citizens. Now, even if serious campaigns are conducted for them, insecurity and illiteracy can be major obstacles to overcome. Also, highlighting the gains of digital payment usage and sharing some examples of individuals who have benefited from it may overcome insecurity problems.

3. How is Har Payment Digital Mission significant for Vision 2025?

Vision 2025 mentions “E-Payments for Everyone, Everywhere, and every time”. The strategy is to attain 100% digital payment by 2025 and the mission can help reach this target.

Source - The IE