RuPay to UPI credit, NPCI is planning a big recast of its businesses
Reserve Bank of India allowed foreign currency cards on RuPay. In FY24, there were 968 million transactions via RuPay cards, lower than 1.26 billion in FY23. The quantum of transactions remained unchanged at ₹2.4 trillion across both years.
On 13 August, NPCI said it is carving out NPCI-BHIM as a fully owned subsidiary, citing the growing demand for digital transactions and the need to promote financial inclusion. However, industry experts suggested that another driving factor may be to take on private entities such as PhonePe and GooglePay, which dominate the market for UPI transactions. The move to grow BHIM is also aimed at reducing ecosystem dependence on a few large private players, experts said.
India recorded about 131 billion UPI transactions in FY24, up from 83.7 billion in FY23, finance minister Nirmala Sitharaman said in April, citing NPCI data. In July, 14.44 UPI billion transactions worth ₹20.64 trillion were processed, up 45% year on year in terms of volume and 35% in terms of value. UPI is now available in seven countries outside India.
“NPCI could then look to segregate its lending business under Credit on UPI," said a third person. Under Credit on UPI introduced in October 2023, NPCI facilitates loans by linking credit cards to UPI IDs, or through pre-sanctioned credit lines extended by banks against UPI IDs. The NPCI also operates the National Automated Clearing House (NACH), FASTag, Aadhar-enabled payment services (AePS), UPI Lite and UPI 123Pay.
The corporation may also look to hive off one of these, the people cited earlier said. July saw 323 million FASTag transactions, up 9% from a year earlier, worth ₹5,578 crore, up 12% year-on-year. Meanwhile, AePS transaction volumes were 11% lower and
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