The success of the Unified Payments Interface, and the launch of its new version, is proof that India is moving mountains to usher in a less-cash economy. But the scope of the BHIM mobile app must be widened.
When former governor of Reserve Bank of India Raghuram Rajan, in April 2016, launched the Unified Payments Interface (UPI)—which allows instant, seamless fund transfer between bank accounts using a smartphone— there were many sceptics. Newage, technology-led government programmes had rarely worked before and a mass behavioural shift from cash to cashless was unheard of.
Over two years hence, the sceptics stand corrected. Statistics suggest that UPI has been a game-changer. Official data from the National Payments Corporation of India (NPCI)—the umbrella organisation for all retail payments in India that also operates the UPI platform—reveals a massive jump in usage and volumes.
In August 2016, around 93,000 UPI transactions (cumulatively valued at ₹3.1 crore) took place through 21 banks. This, in July 2018, multiplied manifold to 23.5 crore transactions (valued at ₹45,843 crore) through 114 banks. The shift towards UPI gathered pace post-demonetisation, when there was a scarcity of cash in the market.
“UPI set out to make payments safer and quicker, which it has done. Prior to this, though there were organised payment interfaces such as NEFT and RTGS and the debit card-based RuPay, India was not solving the problem of enabling real-time, 24X7 payments for the masses, for individuals and merchants,” says Ramaswamy Venkatachalam, managing director (India/South Asia) at FIS, a global provider of financial services technology.
A newer version of UPI—in August, UPI 2.0 was launched— might fare even better. Currently, 11 banks including State Bank of India, HDFC Bank, ICICI Bank and Kotak Mahindra Bank use UPI 2.0.
Some of NPCI’s other high profile products are also successes: Notably, RuPay launched in 2012, which is challenging the duopoly of Visa and Mastercard in the payments gateway space.
Esta historia es de la edición September 14, 2018 de Forbes India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición September 14, 2018 de Forbes India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
