Infosys chairman and architect of Aadhaar Nandan Nilekani has said that UPI is a “game changer” and its transactions will hit the 100 crore mark by December-end, making it largest digital payment system in India. On India’s payment system in comparison with China, Nandan Nilekani said that in India the payment system is still bank owned and that NPCI, a bank owned company is still at the centre of payment-led innovations in India, ET Now quoted him as saying.
UPI (Unified Payments Interface) is a real-time payment system developed by National Payments Corporation of India (NPCI). Founded in 2008, NPCI is owned by a consortium of major banks in India and is regulated by the Reserve Bank of India (RBI). UPI, unlike mobile wallets, allows direct transaction from bank accounts.
Nandan Nilekani further said that due to banks controlling the UPI, India has the best of both worlds — modern payment system and robust banks. He also said that massive dissemination of UPI QR codes is expected over the next couple of years. In India, 30 banks provide the UPI service.
With government’s constant push for a cashless society and after demonetisation in 2016, UPI transactions surged exponentially. In December last year, the number of UPI transactions surged to 145.46 million from 4.5 from January 2017.
On the issue of Aadhaar, whose mandatory linking status and constitutionality is currently being heard in the Supreme Court, Nandan Nilenai said that the 12-digit biometric instrument has saved governments a lot of money by increasing transparency and plugging leakages.
In 2009, Nandan Nilekani was appointed by the then government to head the Aadhaar project. He is known as the architect of the Aadhaar in India.