RBI governor launches three key digital payment initiatives at Global Fintech Fest 2022: In the presence of Nandan Nilekani, Chairman of Infosys and Advisor to NPCI, Biswamohan Mahapatra, Chairman of NPCI, and Reserve Bank of India (RBI) Governor Shaktikanta Das unveiled three significant initiatives at the Global Fintech Fest 2022 that will advance India’s digital payments development: RuPay Credit Card on UPI, UPI LITE, and Bharat BillPay Cross-Border Bill Payments.
Key digital payment initiatives
RuPay Credit Card on UPI, UPI LITE, and Bharat BillPay Cross-Border Bill Payments Initiatives has the potential to transform the ecosystem of digital payments, expand the reach of digital payments to numerous new users throughout India and abroad, and support the process of onboarding the following 300 Mn users to digital payments.
RuPay Credit Card on UPI
- Customers will profit from the increased opportunities to use their credit cards, and merchants will gain from the rise in consumption by being a member of the credit ecosystem and accepting credit cards using resources like QR codes.
- A Virtual Payment Address, or UPI ID, will be connected to RuPay Credit Cards, directly enabling safe and secure payment transactions. The initial stage of operationalization will focus on identifying practical lessons that can be applied to the proposition in later stages to increase utilization.
- The first ones to be able to use the RuPay Credit Card on UPI using the BHIM App will be customers of Punjab National Bank, Union Bank of India, and Indian Bank.
- Users will have a practical option with UPI Lite for quick and easy low-value transactions. India currently thrives on low-value UPI payments, with 50% of all UPI transactions taking place below 200 rupees. Users of the BHIM App will be able to conduct low-value transactions almost entirely offline once UPI Lite is enabled.
- We will get closer to processing a billion transactions per day on the UPI platform with the help of UPI Lite, which will lessen the debit burden on the core banking system and increase transaction success rates while also improving user experience.
- The maximum UPI Lite payment transaction amount will be ₹200, and the maximum UPI Lite balance that can be stored in an on-device wallet at any given moment will be ₹2000. Eight banks, including Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Utkarsh Small Finance Bank, and the Union Bank of India are using the functionality.
Bharat BillPay Cross-Border Bill Payments
- Bharat BillPay Cross-Border Bill Payments will facilitate bill payments for those who live outside of India but also have a home in India to maintain.
- India is one of the top 5 largest recipients of inward remittances, with more than 30 million Indians living overseas. The Bharat BillPay Cross-Border Bill Payments tool would empower and enable Non-Resident Indians (NRIs) to handle utility, water, and telephone-related bill payments on behalf of their families in India.
- The first to launch Bharat BillPay Cross-Border Bill Payments will be Federal Bank with UAE’s Lulu Exchange.
|Current Affairs April 2022|