India saw growth of around 213 per cent in the number of real-time payments processed over the past year; Bahrain, Ghana, the Philippines, and Australia witnessed faster growth in the same period. Furthermore, in terms of the increase in the monetary value of real-time payment transactions, the Philippines, Bahrain, Australia, and Ghana saw twofold increase.
China and South Korea, with more than 38 million and 12 million daily transactions per day, respectively, completed the top three in the Asia-Pacific region, along with India.
“The current pandemic has highlighted the critical importance of instantly getting funds in the hands of those who need it, whether individuals or businesses,” said Raja Gopalakrishnan, head of Global Real-time Payments, FIS.
The Immediate Payment System (IMPS), and Unified Payment Interface (UPI) have revolutionised real-time payment in India. Now UPI, in volume terms, is touching new highs every month and the pandemic has the accelerated the adoption of digital payments
While the National Payments Corporation of India (NPCI) has been successful in democratising digital payments
over the past few years, especially with the launch of UPI, the Reserve Bank of India (RBI) has now invited private players to form a pan-Indian new umbrella entity (NUE) for retail payment systems. Many banks, including the country’s largest lender State Bank of India, are likely interested to bid for it. Speaking with FIS Global, Challa Sreenivasulu Setty, MD, SBI, said the RBI’s idea of inviting private players to set up a pan-Indian NUE for retail payment systems is primarily to ensure there are checks and balances to prevent monopoly and any concentration of risk in the hands of a single player.
A P Hota — former CGM, RBI and former MD & CEO, NPCI
— was quoted as saying by FIS Global that because of high-transacting segments like retail real-time payments, bill payments, toll payments, bulk and repetitive payments are already under the NPCI, but there are concerns about financial viability unless the RBI advises all large banks to join NUE to minimise concentration risk.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.