NPCI moving to give netbanking a UPI-like makeover
Subscribe to enjoy similar stories. Mumbai: You’re about to pay for a purchase on a popular e-commerce website from your mobile, but your bank doesn’t show up in the netbanking list. This stumbling block faced by many consumers may be fixed if a pilot rolled out by the National Payments Corporation of India (NPCI) last month works out.
Why such problems occur is that merchant platforms such as Amazon and Flipkart typically tie up with payment aggregators or gateways such as CC Avenue and PayU, which in turn individually partner with multiple banks to enable netbanking. This involves individual reconciliation with each bank and then settlement with the merchants. This mechanism may become a thing of the past.
NPCI’s subsidiary NPCI Bharat BillPay Limited (NBBL) has rolled out a pilot to make netbanking interoperable with mobile payments, according to five people aware of the development. Banks can join a centralised platform set up by NBBL and directly enable netbanking transactions by leveraging the IMPS (immediate payment service) technology. The initiative, called ‘Netbanking 2.0’, is currently being piloted with 10 banks, including most large private and public sector banks, two mid-sized private banks and one small finance bank, according to these people.
NBBL has also started working with five to six payment aggregators under the pilot that will be integrated onto the platform by the end of this month, the people cited above said. “While IMPS, RTGS and NEFT are channel agnostic, UPI (unified payments interface) payments only work on mobile channels. NPCI now wants to popularise its IMPS product as well, which is why BBPL has been allowed to provide an interoperable platform for internet banking where users won’t
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