NPCI Incorporates BHIM As A Subsidiary To Boost UPI Offerings

SUMMARY

This development is aimed at addressing the growing demand for digital transactions and evolving market expectations

NPCI said that the move is intended to keep pace with innovation and rapidly shifting customer preferences

The development also comes at a time when NPCI has been actively working to take UPI global

Retail payments aggregator National Payments Corporation of India (NPCI) has announced incorporation of NPCI BHIM Services Ltd (NBSL), formerly known as Bharat Interface for Money (BHIM), as a wholly owned subsidiary.

As per ET, this development is aimed at addressing the growing demand for digital transactions and evolving market expectations.

NPCI said that the move is intended to keep pace with innovation and rapidly shifting customer preferences.

Additionally, the move seeks to strengthen India’s digital payment ecosystem and underscores the importance of developing a sovereign digital payments framework, reflecting national pride and significance, NPCI added.

The establishment of NBSL highlights NPCI’s dedication to advancing digital payments and promoting financial inclusion both within the country and globally.

The development also comes at a time when NPCI has been actively working to take UPI global.

In July, NPCI’s international arm, NPCI International Payments Limited (NIPL), forayed into Qatar after partnering with Qatar National Bank (QNB).

In the same month, NPCI entered the UAE after partnering with Network International to facilitate UPI payments. This move allows Indian tourists to use UPI at various outlets in the UAE, including popular malls, enhancing their shopping and travel experience.

In another development, RBI in collaboration with central banks from Malaysia, Philippines, Singapore, and Thailand, launched ‘Project Nexus’ in July 2024. Also, in May, India and Ghana agreed to operationalise UPI on Ghana’s interbank payment system within six months.

NIPL has also partnered with Nepal SBI Bank Limited (NSBL) to launch RuPay cards in Nepal.

UPI is currently accepted in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE.

Meanwhile, Unified Payments Interface (UPI) transactions increased by 3.95% month-on-month (MoM) in July, reaching 14.44 Bn, up from 13.89 Bn in the previous month. On a year-on-year (YoY) basis, transaction volumes surged by 49%.