{"id":12231,"date":"2023-04-07T05:38:35","date_gmt":"2023-04-07T05:38:35","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/04\/07\/indias-central-bank-abandons-upi-rival-project\/"},"modified":"2023-04-07T05:38:35","modified_gmt":"2023-04-07T05:38:35","slug":"indias-central-bank-abandons-upi-rival-project","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/04\/07\/indias-central-bank-abandons-upi-rival-project\/","title":{"rendered":"India’s central bank abandons UPI rival project"},"content":{"rendered":"


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India\u2019s central bank has halted its plans for a high-profile project intended to rival the nation\u2019s dominant payment system, Unified Payments Interface. The project had attracted significant interest from a variety of major conglomerates, tech giants, and financial institutions, including Amazon, Reliance, Facebook, Tata Group, Google, HDFC, and ICICI.<\/p>\n

The Reserve Bank of India had initially invited bids in 2021<\/a> for licenses to operate new retail payment and settlement systems across India. The project was called New Umbrella Entity, or NUE.<\/p>\n

However, according to RBI Deputy Governor T Rabi Sankar, the project\u2019s potential participants failed to propose \u201cany innovative or infrastructural solutions.\u201d Sankar emphasized the central bank\u2019s interest in exploring ideas that go beyond incremental improvements or substitutes for existing technologies.<\/p>\n

UPI, which now processes over 8 billion transactions a month<\/a>, was inching closer to the 1 billion milestone in 2021. The central bank sought to mitigate concentration risk as UPI\u2019s importance in the economy continued to grow, aiming to develop an alternative protocol that would alleviate strain on the existing system.<\/p>\n

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Industry players had formed four consortia and were planning to make a bid for the NUE license. Image: Bernstein<\/p>\n<\/div>\n

PhonePe and Google Pay were commanding the most market share in UPI in 2021 \u2014 not much has changed \u2014 and many industry participants saw NUE as a way to be early and aggressive with a new payments system.<\/p>\n

In an earlier proposal, RBI sought NUEs to be interoperable with each other.<\/p>\n

\u201cThus, NUEs do not have any proprietary access. However, NUEs can customize the networks to their business model and distribution capabilities. If a conglomerate is strong in e-commerce, the NUE could customize to the specific needs of that use-case. UPI has market share caps\/calibrated growth for new players (eg. WhatsApp). NUEs would not have such restrictions and might help with accelerated network effects for private players. Thus, NUEs customized design and self-governance could provide stronger capabilities. Unlike UPI\u2019s generic payment network, NUEs will have customized networks based on use-cases,\u201d Bernstein wrote in a report in 2021.<\/p>\n<\/p><\/div>\n


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India\u2019s central bank has halted its plans for a high-profile project intended to rival the nation\u2019s dominant payment system, Unified Payments Interface. The project had attracted significant interest from a variety of major conglomerates, tech giants, and financial institutions, including Amazon, Reliance, Facebook, Tata Group, Google, HDFC, and ICICI. The Reserve Bank of India had […]<\/p>\n","protected":false},"author":1,"featured_media":12232,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":{"0":"post-12231","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tech"},"_links":{"self":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/12231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=12231"}],"version-history":[{"count":0,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/12231\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/12232"}],"wp:attachment":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=12231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=12231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=12231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}