The National Payments Corporation of India (NPCI), a prominent retail payments aggregator, has announced a significant development in its digital payments framework. The organization has incorporated NPCI BHIM Services Ltd (NBSL), formerly known as Bharat Interface for Money (BHIM), as a wholly-owned subsidiary. This move is aimed at bolstering innovation and meeting the rapidly evolving preferences of customers.
Objectives of Incorporation
NPCI’s initiative to establish NBSL underscores its commitment to reinforcing India’s digital payment ecosystem. The organization aims to develop a sovereign digital payments framework, reflecting the nation’s pride and significance. This development is pivotal for NPCI in its pursuit to advance digital payments and promote financial inclusion both within India and across the globe.
NPCI’s Global Expansion Efforts
In tandem with its domestic advancements, NPCI has been actively working to expand its reach globally. In July, its international arm, NPCI International Payments Limited (NIPL), made inroads into Qatar through a partnership with Qatar National Bank (QNB). Additionally, NPCI ventured into the UAE by partnering with Network International, facilitating Unified Payments Interface (UPI) payments for Indian tourists at various outlets, including popular malls, thereby enhancing their shopping and travel experiences.
Collaborative Efforts and Developments
In a collaborative effort, the Reserve Bank of India (RBI), alongside central banks from Malaysia, the Philippines, Singapore, and Thailand, launched ‘Project Nexus’ in July 2024. Furthermore, in May, India and Ghana reached an agreement to operationalize UPI on Ghana’s interbank payment system within six months. NIPL has also partnered with Nepal SBI Bank Limited (NSBL) to launch RuPay cards in Nepal. Presently, UPI is accepted in several countries, including Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE.
UPI Transactions Surge
Amid these developments, UPI transactions witnessed a substantial increase. In July, the transactions rose by 3.95% month-on-month (MoM), reaching 14.44 billion, up from 13.89 billion in the previous month. On a year-on-year (YoY) basis, transaction volumes surged by an impressive 49%, reflecting the growing adoption and popularity of UPI as a preferred mode of digital payment.
