Re:Bank transfers as a payment method
by vishnugupta on Saturday November 27, 2021 @02:05AM
(#29358204)
Indeed, UPI is a culmination of several years of ground work laid before it (IMPS, Adhaar etc.,)
Let me add one thing here though.
> Low cost of payment infrastructure to the banks
The cost is low primarily because it's is borne by tax payers [1] and the issuing banks. Issuing banks aren't too happy with forgoing a good chunk of their profits that they earn through issuing charges and also having to maintain the infrastructure free of cost.
A new for-profit payment consortium [2] has been proposed to compete with NPCI. Will be interesting to see how this plays out.
Let me add one thing here though.
> Low cost of payment infrastructure to the banks
The cost is low primarily because it's is borne by tax payers [1] and the issuing banks. Issuing banks aren't too happy with forgoing a good chunk of their profits that they earn through issuing charges and also having to maintain the infrastructure free of cost.
A new for-profit payment consortium [2] has been proposed to compete with NPCI. Will be interesting to see how this plays out.
[1] https://www.business-standard.com/article/economy-policy/mdr...
[2] https://m.rbi.org.in/scripts/bs_viewcontent.aspx?Id=3832