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    NPCI sets up subsidiary for exporting UPI to international markets: RBI governor

    Synopsis

    UPI is an interoperable instant fund transfer technology created by NPCI that enables interbank fund transfer. There are currently 140 member banks using the UPI rails to enable payments for customers across the banking sector. The NPCI is RBI's payment governance arm and is owned by a consortium of top Indian banks.

    Untitled-5Agencies
    The governor, citing Bank of International Settlement's (BIS) recently released paper which hailed India's digital financial infrastructure, said that UPI is being "internationally watched."
    MUMBAI: The National Payments Corporation of India (NPCI) has setup a subsidiary to export the much acclaimed Unified Payment Interface or UPI for governments and central banks interested in implementing similar instant fund transfer in their countries, Reserve Bank of India governor Shaktikanta Das said here on Monday.

    The subsidiary, apart from taking the technology to foreign markets, will also look at various business propositions exporting the payment solution will bring to the NPCI.

    "RBI has played an important role in setting up UPI," said governor Das, address an industry gathering at Times Network's India Economic Conclave. "NPCI has setup a subsidiary to take UPI to other countries and look at business propositions such an export will bring for themselves."

    The governor, citing Bank of International Settlement's (BIS) recently released paper which hailed India's digital financial infrastructure, said that UPI is being "internationally watched."

    The announcement on setting up of the NPCI's export subsidiary also comes days after global search engine Google had written to US central bank Fed to adopt a similar payment infrastructure as India citing the UPI example.

    "UPI was thoughtfully planned and critical aspects of its design led to its success," Google vice president Mark Isakowitz, Google's vice president had written. "The approach in India attained amazing results for banks, consumers and other players within the payments ecosystem and the central bank."

    Google Pay is the largest UPI player in India with over 35 percent market share closely followed Walmart owned PhonePe. Softbank backed Paytm comes third with around 16% of the overall transaction pie in August 2019.

    UPI is an interoperable instant fund transfer technology created by NPCI that enables interbank fund transfer. There are currently 140 member banks using the UPI rails to enable payments for customers across the banking sector. The NPCI is RBI's payment governance arm and is owned by a consortium of top Indian banks.

    Since its launch in April 2016, months prior to demonetization, UPI has become India's fastest growing payment transfer interface clocking over 1 billion transactions worth around $27 billion in the month of November 2019. The widespread adoption of the technology in India has led to various international bodies, advanced economies, and also private companies calling for the set up of similar domestic payment infrastructure in several countries such as Singapore and UAE.


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