Revolutionizing Online Transactions: RBI governor gave Greenlights NPCI’s Interoperable Payment System for 2024
On March 4, the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, announced that the central bank has approved NPCI Bharat BillPay Ltd (NBBL) to introduce an interoperable payment system for Internet banking. This initiative aims to expedite fund settlement for merchants.
RBI governor Das mentioned:
The implementation of this system is scheduled for this year.
“We have approved the implementation of an interoperable system to NPCI Bharat BillPay Ltd (NBBL),” stated Das during the Digital Payments Awareness Week celebrations at the RBI headquarters in Mumbai.
This move is expected to enhance user trust in digital payments. Governor Das emphasized the RBI’s commitment as a regulator to support India’s digital payment journey.
Furthermore, the governor encouraged all stakeholders, including industry players, payment system operators, media, digital payment users, and others, to collectively work towards achieving the mission of ‘Har Payment Digital’ (Every Payment Digital).
India has emerged as a global powerhouse in digital transactions, boasting a staggering share of nearly 46 percent of the world’s digital transactions. This remarkable growth trajectory underscores the nation’s rapid digital transformation, as highlighted by the Reserve Bank of India’s Digital Payment Index, which has surged fourfold over the past five years. Central to India’s digital payment landscape is the Unified Payments Interface (UPI), heralded as the primary catalyst behind this exponential growth.
According to RBI Governor Shaktikanta Das:
UPI’s contribution to digital payments in India soared, reaching nearly 80 percent in 2023. The sheer volume of UPI transactions has witnessed an astronomical rise, escalating from a modest 43 crore in 2017 to a staggering 11,761 crore in 2023.
Furthermore, Rbi Governor Das emphasized the accelerating pace at which UPI has achieved monumental milestones. Notably, the time taken to reach the tipping point of the next 1,000 crore transactions in UPI has significantly decreased over time. For instance, while it previously took 1,668 days to reach the first 1,000 crore UPI P2M (Peer-to-Merchant) transactions, the latest 1,000 crore transactions were accomplished in a mere 45 days—a testament to the rapid pace of adoption and utilization.
Similarly, the timeline for UPI (Unified Payments Interface) P2P (Peer-to-Peer) transactions to reach the first 1,000 crore transactions decreased from 1,329 days to just 65 days, highlighting the growing efficiency and efficacy of the UPI platform. Governor Das lauded the monumental progress of UPI, revealing that the platform presently processes a staggering 42 crore transactions daily, underscoring its pivotal role in facilitating digital payments across the nation.
Despite the unprecedented success and widespread acceptance of digital payments, Governor Das emphasized the substantial scope for further expansion and adoption in India. This sentiment reflects the ongoing commitment to leveraging digital technologies to enhance financial inclusion, efficiency, and transparency in the country’s economic ecosystem.
In conclusion, India’s dominance in the global digital payments arena, propelled by the exponential growth of UPI, showcases the nation’s steadfast commitment to embracing digital innovation. With burgeoning transaction volumes and evolving consumer preferences, the future holds immense promise for the continued expansion and integration of digital payments into everyday life, driving economic growth and prosperity across the nation.
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