News Excerpt:
NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) have announced a landmark partnership to introduce a UPI-like real-time payments system in Peru making it the first South American country to adopt the system.
Benefits to the Peruvian economy:
- This strategic partnership will empower BCRP to build a robust and efficient real-time payment platform in Peru. It will offer fast, secure, and reliable digital payments.
- The innovative system will facilitate instant payments between individuals and businesses, reducing reliance on cash transactions and promoting digital payments among Peru’s large unbanked population.
- This partnership will increase financial inclusion and reduce transaction costs.
- This will drive innovation, resilience, and transparency in the Peruvian payment ecosystem.
Greater connectivity of UPI:
- UPI’s collaborative and open banking model promotes greater connectivity and interoperability with both domestic and international payment networks.
- This collaboration reflects India’s commitment to advancing digital public goods globally.
- As Peru embraces this cutting-edge technology, it sets a precedent for other countries in the region to follow suit, paving the way for a more connected and financially inclusive world.
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Unified Payments Interface (UPI)
About:
- It was launched in India in 2016 by RBI and NPCI in collaboration with various banks and payment service providers.
- NPCI is the regulator of UPI.
Objective:
- It was to simplify digital payments and promote financial inclusion by enabling easy and convenient money transfers.
- It is a real-time payment system that facilitates 24*7 and 365 days fund transfers through mobile devices between bank accounts in India.
- It allows users to link multiple bank accounts to a single mobile application, providing a seamless and secure platform for making payments.
- Customers are not required to enter the details such as Card no, Account number; IFSC etc.
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National Payments Corporation of India (NPCI)
- It is an initiative of RBI and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007
- The objective of NPCI was to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.
- It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013).
NPCI International Payments Limited (NIPL)
- NIPL was incorporated in 2020, as a wholly owned subsidiary of National Payments Corporation of India (NPCI).
- It facilitates Indian travelers to make payments using the BHIM UPI QR for all their retail purchases at international merchant establishments.
- Currently, BHIM UPI QR has gained acceptance in many countries including Singapore, UAE, Mauritius, Nepal and Bhutan.
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