What are the companies in India's three-party payments - An analysis of the evolution of the accounting model under India's payment system

India's payment system is closely linked to its accounting model, which has evolved a number of times in line with the country's rapid economic growth and advances in fintech. The following is an analysis of the evolution of the accounting model under the Indian payment system:

1. **Traditional accounting model (1950s to 1980s)**:

- At this stage, India's payment system relied heavily on cash and paper transactions.

- The accounting model is based on manual records, and the accounting process is cumbersome and inefficient.

- Accounting codes and standards are largely modelled on the British model, as India was more influenced by the British in the early years of independence.

2. **Initial introduction of electronic payments and accounting (1980s-1990s)**:

- With the introduction of electronic payment systems, the accounting paradigm in India has begun to shift to electronic.

- In the 1980s, the Reserve Bank of India (RBI) started promoting electronic payment systems such as Electronic Funds Transfer (EFT).

- Accounting software is beginning to be introduced to improve the efficiency and accuracy of accounting processes.

- Accounting standards are beginning to be progressively aligned with international standards, such as the Indian Accounting Standards (IndAS).

3. **Reform of accounting standards (2000s)**:

- In the 2000s, India embarked on a series of accounting standard reforms to enhance the transparency and comparability of accounting information.

- The Indian Accounting Standards (IndAS) gradually replaced the old Indian Accounting Standards (IAS).

- IndAS is highly aligned with the International Financial Reporting Standards (IFRS), which helps Indian companies to connect with the international market.

4. **Modernisation of payment systems (2010s to present)**:

- In the 2010s, the Indian payment system underwent rapid modernisation with the introduction of various electronic payment instruments such as Unified Payment Interface (UPI), mobile payments, etc.

- Accounting models have also been adapted to accommodate new payment methods. For example, the proliferation of real-time payment systems (RTGS) and electronic payment systems (NEFT) requires accounting systems capable of processing and recording transactions in real time.

- The application of cloud computing and big data technology has made accounting processing more efficient and intelligent.

- Accounting software and systems are beginning to integrate more analytical tools to help businesses better understand and utilise financial data.

5. **Exploration of digital currency and blockchain technology**:

- In recent years, India has begun to explore the use of digital currencies and blockchain technology in the payment system.

- This could have far-reaching implications for the accounting model, for example, by enabling the immutability and transparency of transactions through blockchain technology.

- Accounting standards and regulations will need to be adapted accordingly to accommodate these emerging technologies.

Overall, the accounting model under the Indian payment system has undergone an evolutionary process from traditional manual records to electronic and automated to intelligent and digital. This process has not only improved the efficiency and accuracy of accounting processing, but has also enhanced the competitiveness of Indian enterprises with the international market.