The Reserve Bank of India has introduced its plan to build a "best-in-class" payment and settlement system that will reduce the nation's dependence upon cash.

In a newly published paper, "Payment and Settlement Systems in India: Vision-2018," RBI lays out a "less-cash" financial services plan based on "Five Cs": coverage; convenience; confidence; convergence; and cost, a report by Indian Express said.

According to the Vision-2018 report:

The regulatory framework, based on consultative approach, aims at achieving enhanced coverage of the payment systems coupled with convenience for end-users. A key objective would be to ensure a robust payments infrastructure in the country to increase accessibility, availability, interoperability and security. The oversight and supervisory framework would focus on strengthening the resilience of both large value and retail payment systems in the country.

RBI aims to use innovation to achieve a significant decrease in paper-based payments and a corresponding increase in electronic payments. In particular, the bank's plans will address the use of mobile phones as a tool for payments and banking.

ATMs will also play a role of growing importance as they increasingly enable nonfinancial transactions and value-added services, Indian Express said. In light of this, RBI intends to review "the physical and logical safety and security requirements of ATMs infrastructure and issue necessary guidelines to strengthen them," in order to ensure customer confidence in the channel.

Additionally, RBI will reassess its white-label ATM guidelines, which so far have not produced the central bank's desired level of financial inclusiuon among rural and semi-urban communities.