Reserve Bank of India (RBI) Governor Shaktikanta Das held a meeting on Wednesday (May 8) with key stakeholders of the unified payments interface (UPI) ecosystem, aiming to strategize the expansion of digital payment offerings.
Discussions centered on plans to amplify the UPI infrastructure and tackle challenges confronted by fintech players. The central bank actively sought innovative ideas to integrate potential users into the digital payments fold.
The gathering, including RBI Deputy Governor T Rabi Sankar, witnessed participation from representatives of the National Payments Corporation of India (NPCI), banks, third-party application providers (TPAP), and technology service providers.
A statement released by the central bank read, “The Governor, Reserve Bank of India, held a meeting on May 08, 2024, with the major stakeholders in the UPI ecosystem… to discuss potential strategies for further expanding the reach of UPI… There were wide-ranging discussions on various aspects to widen and deepen the adoption and usage of UPI.”
RBI affirmed its commitment to evaluate suggestions garnered from the meeting participants and undertake requisite actions in due course.
This move underscores the central bank’s efforts to assess challenges encountered by the fintech ecosystem, particularly within the digital payments domain. It aligns with recent regulatory measures targeting non-compliant fintech platforms.
Earlier this year, RBI imposed restrictions on Paytm Payments Bank and Kotak Mahindra Bank for non-compliance with regulatory norms. Despite regulatory scrutiny, the central bank has begun issuing payment aggregator (PA) licenses at an accelerated pace since the onset of the year.
Nevertheless, UPI’s trajectory continues to surge, exhibiting widespread adoption. NPCI data reveals that the digital payments network facilitated 1,330 crore transactions amounting to INR 19.64 lakh crore in April 2024.
PhonePe, a fintech behemoth owned by Walmart, maintained its dominant position in the digital payments landscape, commanding nearly half (48.87%) of the total transactions in April.
