The Unified Payments Interface (UPI) has been the major driving force in the overall growth of digital payment transactions in the country. It has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
Speaking at the Mint BFSI Summit in Mumbai on Thursday, the Reserve Bank of India (RBI) Governor Shaktikanta Das lauded private companies for their roles in making India a world leader in the UPI Payment system.
What Shaktikanta Das said on UPI at Mint BFSI Summit and Awards
1)I would not look at UPI as a monopoly.
2)The success of UPI in a large measure also owes a lot to the private sector payment players.
3)The private sector companies have had a major role.
4) UPI is perhaps the best in the world and should become a world leader.
"The digital lending guidelines have been well accepted. The Fintech sector is growing and will grow but it needs to grow sustainability and that is our emphasis," Das said during the Mint BFSI Summit.
Das also mentioned that the RBI has undertaken a complete overhaul of the banking system regulatory architecture, boosting confidence in the digital lending system.
“From 2020 RBI has undertaken a complete overhaul of the banking system regulatory architecture. The fact that the regulator has now provided a framework for Fintech lenders and app providers, it gives greater confidence to investors. The flow of investments into digital lending has grown and the confidence in the system has gone up,” das said while delivering the keynote address at Mint BFSI Summit.
Further, Shaktikanta Das said that the central bank's stand on cryptocurrency remains unchanged. “Traveling down that path will create huge risks. I don't think the world or emerging markets can take a crypto mania like the Tulip mania".
On December 8, Shaktikanta Das made two announcements related to UPI in India. The first announcement was related to "enhancing UPI transaction limit for specific categories" such as payments to hospitals and educational institutions from the current ₹1 lakh to ₹5 lakh. The second was related to the enhancement of the limit in e-mandates for recurring payments for specified categories. Thus limits for e-Mandates for making payments of a recurring nature have been raised to ₹1 lakh for mutual fund subscriptions, insurance premium subscriptions, and credit card repayments.
What is UPI?
It is a mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly using a Virtual Payment Address (VPA) created by the customer.
