Tuesday, September 19, 2017

National Payments Corporation of India (NPCI) - Driving Revolution in Digital Payments

In recent time the digital payment industry in India has grown significantly.  As a cash-dependent economy amount of cash circulation in India is still very high (~18% of country's GDP; Source: PwC) is cash -dependent, making India as one of the most cash-dependent countries in the world.

However, recent de-monetization by the government along with the boom in the digital world with help of strong smartphone penetration has increased the awareness about digital payments. The preference for hassle-free transactions and secured payment solutions are are key drivers for the growth of digital payments in India.

Last week I was invited by the National Payments Corporation of India (NPCI) at their headquarters in Mumbai for a Bloggers meet. I grabbed this opportunity to witness the revolution in Digital Payments with the front runners of digital payments & bring the same to my readers.

The Agenda of the meet was to bring awareness & share knowledge on NPCI role in India's digital payment system as a front-runner in this segment.

National Payments Corporation of India (NPCI):

NPCI represents the umbrella organization for all retail payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association. NPCI received the Certificate of Commencement of Business in April 2009.  It is creating an infrastructure which rests on the principle of large-scale and high volumes, resulting in payment services at a fraction of the present cost structure.

The industry is at an inflexion point led by fast-changing consumer behavior, government/regulatory initiatives, ever-increasing entrepreneurial activity and strong investor appetite. This synergy is unleashing tremendous innovation and would transform the financial services/ payment sector in India. 

RuPay Evolution & its Benefits:

RuPay is NPCI’s card payment network which is accepted at ATMs, PoS machines, and e-commerce sites. RuPay offers lower charges than its global competitors like Visa and MasterCard. Key benefits of RuPay include lower cost and affordability, and penetration in the untapped/unexplored consumer segment. RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products. NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques et al and is extremely well placed in nurturing RuPay cards across these platforms. 

The RuPay card is available in 3 variants: Debit Card, Credit Card & Pre-paid cards. The NPCI is aiming to ramp up the presence of RuPay across all user categories & they have initiated various tie-ups to expand their global footprints.

Unified Payments Interface UPI: 

UPI is a simple & instant payment system created by NPCI that is based on IMPS system. 
UPI can operate on a smartphone and can be thought of like an email ID for money. It lets you transfer money immediately between any two parties' bank accounts and works 24x7. UPI was started by NPCI in August 2016 with 21 Banks. Users can map multiple bank accounts into one single UPI App. One can download over 37 UPI Apps and BHIM available in Google Play or App stores.

Bharat Interface For Money (BHIM):

BHIM is a smart mobile-based app based on Unified Payment Interface -UPI that allows simple, easy and quick payment transactions using UPI. The user can send money using a Virtual Payment Address(VPA), Account Number & IFSC, Aadhaar Number or QR Code.

How to Use BHIM App:

We also met Mr. Dilip Asbe, Chief Operating Officer (COO) at National Payments Corporation of India (NPCI), and delved deeper into NPCI’s role in emerging digital payment industry in India. Bloggers asked questions related to the vision & future plans of NPCI. NPCI vision is to be the Best payments network globally with a mission of touching every Indian with one or other payment services of NPCI by 2020.

Mr. Dilip Asbe- COO NPCI

There was a fun Quiz for Bloggers in which everyone participated with a lot of enthusiasm. 
The overall experience of the NPCI blogger meet was fantastic. We had a great time with officials from NPCI providing us a plethora of knowledge around the revolution in digital payments.

To all my readers, I would recommend you to explore all the possibility of having more digital transactions & move in the direction of taking India toward a cashless society. 

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