One of the dilemmas that a central bank like RBI faces is whether it should play an active role in pricing of payment products. The banks may argue that pricing should be market driven and left to the banks. The public may expect the regulator to ensure a fair pricing structure. The difficulty for the regulator is in balancing the expectations.
RBI as a policy does not usually intervene in pricing of payment products and expects the banks to self regulate and ensure a fair price structure. However, our intervention becomes necessary when the industry behaves in a manner where the public policy objectives of affordability and accessibility to modern electronic payments are not being served.