Rock. NPCI. Hard Place.

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 too poor to even own a phone.

AUTHOR

Arundhati Ramanathan

Arundhati is Bengaluru-based. She is interested in how people use money in the digital age and how new economies will take shape based on that interaction. She has spent over 10 years reporting and writing on various subjects. Previous stints were at Mint, Outlook Business and Reuters.

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