RBI releases framework for geo-tagging of payment system touch points

Reserve Bank of India (RBI) on Friday released the framework for geo-tagging of payment system touch points to ensure proper monitoring of the availability of payment acceptance infrastructure.

Geo-tagging refers to capturing the geographical coordinates (latitude and longitude) of payment touch points deployed by merchants to receive payments from their customers.

The payment acceptance infrastructure includes Point of Sale (PoS) terminals, and Quick Response (QR) codes.

According to the Reserve Bank of India (RBI), it is focused on deepening of digital payments and providing inclusive access to all citizens of the country.
“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.

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.