Non-banking Cos Using UPI to Get a Payments Council Seat
The Payments Council of India, the industry body for payments in the country, is in the process of forming a separate subcommittee for non-banking private players using Unified Payments Interface (UPI) for fund transfer.
This comes amid steady growth of UPI-based transactions and mushrooming of private companies on the UPI platform in partnership with banks. In a closed-door meeting on Tuesday, companies such as PhonePe, Paytm, Amazon Pay, Google, WhatsApp, Hike and Truecaller, along with the National Payments Corporation of India (NPCI), discussed issues related to UPI. “The plan is to make private players also part of the decisionmaking processes around UPI which can help these companies manage the regulatory environment better,” said a senior executive of a payment company, who attended the meeting.
The main challenge for the subcommittee, the executive said, would be to resolve operational issues which are currently plaguing the instant fund settlement platform.The industry has been demanding a separate platform for private non-banking players so that there could be industry level discussions on technical issues relating to UPI since the steering committee which influences decisions at NPCI has representation only from banks. Henceforth, industry participants will be able to contribute as well.
“We have made NPCI part of the committee so that it can get a platform for direct interaction with tech players in the payments business,” said an official, who attended the meeting. “Overall, the aim is to organise a space for developmental discussions on UPI.”Various payment executives ET spoke to had earlier vented their frustration over several circulars issued by NPCI which they said had made it extremely difficult for private players to keep up with the regulatory environment. With the large jump in volume of UPI transactions, they said, there was a need for all players to come together and manage operational issues better, which such a platform could try to address.
The Economic Times, New Delhi, 11th April 2018