In 1982, the RBI started to look at introducing Magnetic Ink Character Recognition or MICR technology, which allowed a machine to swiftly read and process cheques in a particular format, such as nine digits. The easing of the process of sorting millions of cheques using computers marked the first move towards an electronic payments system in India.
The next step was to build a communications network for banks, which would facilitate the transfer of funds between banks — for their own accounts, those of customers, and for government transactions. This was done through BANKNET, which was owned by the RBI and ....
