New Delhi, June 17 -- The Reserve Bank of India's (RBI) Payments Vision 2028 is set to bring both opportunities and significant challenges for banks, as they are forced to adapt to a more competitive and technology-driven payments landscape, according to a report by Ernst & Young (EY).

The RBI introduced the initiative in March 2026 under the theme 'Shaping India's Payment Frontier', proposing measures that include expanding customer control over digital payment modes, a unified application process and dedicated reporting on cross-border transactions.

Stiffer Competition, Higher Costs

One of the more consequential proposals is the Payments Switching Service (PaSS), which would allow customers to switch payment service providers or bank...