While the changes in the wholesale payments are devoted to providing an efficient channel for transmission of monetary policy signals, and for the smooth functioning of various markets, the changes in the retail payments are aimed at providing efficient and timely payment mechanisms to the citizens of this country.
The payment system also assumes importance in the context of domestic financial sector reforms and global financial integration that the country is undergoing currently. Foreign investments (direct and portfolio) are encouraged by the availability of an efficient payments system, as also the need for a low cost remittance facility for migrants to send money to their kith and kin within the country.