Being a conduit for 70% of India’s digital payment volumes is no mean feat. From cheques to ATMs to IMPS IMPS Immediate Payment Service IMPS is an instant payment inter-bank electronic funds transfer system in India transactions to Rupay Rupay Rupay NPCI's card network that competes with Visa and Mastercard to UPI UPI Unified Payments Interface UPI is a instant real-time payment system , the country’s retail payments body, the National Payments Corporation of India, (NPCI) handled 4.3 billion transactions worth Rs 19,90,000 crore ($267.5 billion), for the month of March 2021 alone.
RBI’s search for another NPCI starts a street fight
The Reserve Bank of India wanted entities with new ideas to take digital payments beyond 100 million. Not only does it now have a pitched battle on its hands, but the consortiums scrambling for a licence want to duplicate existing payments products
Six consortiums, made up of 30+ companies, have applied for a licence to become a New Umbrella Entity; two are expected to win an in-principle nod
RBI wants to reduce the risk of concentration in the National Payments Corporation; a majority of India’s digital money flows through NPCI
NUE aspirants—banks, card-issuers, tech companies, payments solutions providers alike have been hurt by NPCI's dominance
But with so many of them in the fray, the issue of conflicts of interest has already raised its head