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Mon. Jul 22nd, 2024

RBI and NPCI will work on expanding UPI to 20 countries by FY29

By Vaseline May30,2024
RBI and NPCI will work on expanding UPI to 20 countries by FY29

The Reserve Bank of India, along with NPCI International Payments (NIPL), will start work on bringing UPI to 20 countries in FY25 with a completion timeline of FY29, the central bank said in its annual report for FY24.

“The steady stream of innovations has increased the usability and ease of use of UPI, leading to UPI becoming the largest retail payment system in terms of transaction volume,” the report said.

UPI offers features like UPI123Pay, on-device UPI Lite wallet, linking RuPay credit cards to UPI, and processing single and multiple charge mandates. In FY24, additional features such as conversational payments, offline transactions using Near Field Communication (NFC) technology and pre-approved lines of credit from banks were added to the payment channel.

The central bank will also explore multilateral linkages and opportunities for cooperation of the Fast Payment System (FPS) with a group of countries such as the European Union and the South Asian Association for Regional Cooperation (SAARC).

Other area of ​​interest

Another area of ​​focus will be exploring alternative risk-based authentication mechanisms using behavioral biometrics, location/historical payments, digital tokens and in-app notifications. Currently, the payment ecosystem is largely dependent on the SMS-based one-time password (OTP) as an additional authentication factor (AFA).

“However, with the advancement in technology, several innovative solutions are now available to address the fraud and friction in payments,” the RBI said, adding that it will also explore introducing real-time beneficiary name validation before fund transfers .

The central bank has granted authorization to 22 online payment aggregators (PAs), two non-bank issuers of Prepaid Payment Instruments (PPIs) and one platform operator of Trade Receivables Discounting System (TReDS) in FY24, and in principle authorization to some other online PAs, PPIs, one white label ATM (WLA) operator and one TReDS platform operator. It also approved one bank for issuing PPIs, two banks operating as Bharat Bill Payment Operating Units (BBPOUs) and 52 banks for providing mobile banking facilities to their customers.

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