Banks, NITI Aayog, RBI, apps. The NPCI is being pulled in too many directions. The launch of BHIM Aadhaar proves it
The NPCI is a tech-savvy entity but it does not have the capacity to own and run consumer-facing products
BHIM and UPI may move out of the NPCI’s control
Unlike BHIM, BHIM Aadhaar will need banks’ on-the-ground support. But will banks find it worth their while?
Merchants pay zero fees to use BHIM Aadhaar. So the government is compensating banks for the time being
On 14 April, just 105 days after he surprised India’s banking and fintech sectors by announcing BHIM, a government-backed payments app, Prime Minister Narendra Modi dug in his heels.
At a government-funded lucky draw function in Nagpur to reward customers and businesses for using digital payment methods, Modi launched another payments platform—BHIM Aadhaar. The day was also the birth anniversary of Bhimrao Ambedkar, the father of India’s constitution and on whose name BHIM is based.
There was now a BHIM line of products. The original BHIM meant for smartphone and feature phone users. And now BHIM Aadhaar, for those…
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