The demonetisation of currency notes with a value of R1,000 and R500 should result in more digital transactions says AP Hota, managing director, National Payments Corporation of India (NPCI), which recently launched the Unified Payments Interface (UPI) platform. Hota told FE in an interview on Tuesday that there had been a spurt in transactions via the Rupay card after November 8. Edited excerpts.
On UPI downloads: We have two million downloads and with HDFC Bank already in and with State Bank of India (SBI) expected to join the platform tonight, this should go up. But these are very small numbers, ideally, we should be at 25 million.
On transactions: On average we are doing 10,000 transactions a day, which is a fraction of debit and credit card transactions. The average value of the transactions is R3,600 or about R108 crore in a month.
On RuPay: There has been a jump in transactions to 10 lakh a day, which is three times that on a normal day, on PoS (point of sale) machines and for e-commerce. We are expecting a further rise. The average value of transactions has fallen to R1,300 from R2,000.
On IMPS: There has been a jump in transactions to 1.5 million a day from 1.2 million.
On wallets joining UPI: As of now, the RBI has stipulated wallets should not come in on their own but in partnership with banks.
On banks building the UPI into their own apps: Banks would want to retain customers and keep them captive and, therefore, some banks have built in the UPI feature into their apps.
So customers will have the option to use the UPI. Whether standalone wallets are attracting more customers: The wallet interface is probably more user-friendly because banks want to be doubly sure and, therefore, put in more checks and balances. It is part of their risk management and customers’ accounts must be protected.