Tag: npci

How Indian banks are leveraging blockchain technology, BFSI News, ET BFSI

Banking & Finance

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In a bid to foster blockchain technology for providing various financial services, banks have put in place Indian Banks’ Blockchain Infrastructure Company Private Limited (IBBIC).

The Reserve Bank of India (RBI) has informed that it has been proactive in providing guidance for development of blockchain-based application through its new regulatory sandbox environment, the government told the Rajya Sabha.

“State Bank of India (SBI) and Canara Bank are part of a company called Indian Banks’ Blockchain Infrastructure Company Private Limited for using blockchain technology for providing various financial services. SBI has informed that as a part of IBBIC development, it has initiated steps to incorporate blockchain technology in trade-related transactions,” the government said.

Further, SBI has been onboarded on a blockchain-enabled platform, for exchanging payment-related compliance queries.

Canara Bank has informed that it had formed a small technology innovation team, which is working on identifying the potential use cases best suited to banking operations, he added.

The deployment

Banks are looking to deploy the blockchain technology to solve issues in the processing of Letters of Credit (LCs), GST invoices and e-way bills.

Currently, the process of issuing an LC is relatively slow and requires human intervention to prevent frauds, authenticate transactions, and balance the ledger.

Using blockchain to issue LCs would potentially solve these issues. Even elemental fraud like the issuance of two LCs on a single invoice can be easily prevented with the help of this blockchain technology.

The move is expected to eliminate paperwork, reduce transaction processing time, and offer a secure environment. The system will be based on Infosys’ Finacle Connect, a blockchain-based platform that enables digitisation and automation of trade-related finance processes. Disbursements on domestic LCs, which used to take four to five days, can be done in four hours with the technology. The technology has already been deployed or piloted by the likes of SBI and Axis Bank at an individual level.

Who are the stakeholders of IBBIC?

Out of the 15 banks, eleven are private sector banks while four are public sector ones.

The private banks include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, IDFC Bank, South Indian Bank, and Federal Bank. And, the public sector units encompass Bank of Baroda, SBI, Canara Bank, and Indian Bank.

The incorporation of IBBIC is similar to that of the National Payments Corporation of India (NPCI), which is an umbrella organization that handles critical real-time products like RuPay, UPI, and FASTag.



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NPCI Bharat BillPay onboards Tata Power as the first power company on ClickPay

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NPCI Bharat BillPay on Tuesday announced its integration with Tata Power on ClickPay – making it the first power company to go live on the newly launched platform.

“Bharat BillPay’s marquee offering – ClickPay will enable Tata Power customers to make monthly electricity bill payments with ease,” it said in a statement.

Also read: Network International, NPCI International sign MoU

To offer an automated and valuable electricity bill payments experience, Tata Power will generate the ClickPay link and share it with customers which will redirect them to the payment page comprising payment details, it further said.

This initiative will enable more than seven lakh customers of Tata Power (Mumbai) to pay their electricity bills using the service.

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NPCI Bharat BillPay on-boards ICICI Prudential Life Insurance on ClickPay

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NPCI Bharat BillPay has tied up with ICICI Prudential Life Insurance to provide ClickPay to the insurer’s customers.

ICICI Prudential Life Insurance is the first insurance company to offer this facility of ClickPay to its customers empowering them to make renewal premium payments with ease.

“To offer an automated and valuable insurance premium payment experience, ICICI Prudential Life Insurance will generate the ClickPay link and share it with the customers which will redirect them to the payment page comprising payment details,” said a statement on Thursday.

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Shopify survey, BFSI News, ET BFSI

Personal Finance

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– Kruthikaa Lakshman

Contactless payments, especially UPI, is gaining traction this Diwali. Nearly 50% of festive shoppers said that they preferred to process payments via UPI as
opposed to any other form, a survey by e-commerce platform Shopify said.

The survey found that the preference for UPI remains consistent across both, online and offline shopping experiences.

The COVID-19 pandemic has had a lot to do with these trends, the survey said. Though the experience that predates the festival is anticipated by many, the
convenience and safety of online shopping has persisted by 76.9% of the shoppers this festive season, it added.

Shopify India released “The Festive Shopping Outlook Report 2021”, measuring consumer trends in the last month, in time for Diwali. Trends have shown that the festive shoppers who would traditionally begin buying for the season, a month in advance hadn’t done so this year.

With mobile phones and internet access to non-metro shoppers, more and more people were seen opting for the digital medium. Online shopping is prevalent after the pandemic has increased to larger areas of the country, according to the report.

60% shoppers use digital payments multiple times a week for festive season shopping: Survey

Contactless payment using radio frequency identification (RFID) or near field communication (NFC) is also constantly improving. The National Payments Corporation of India (NPCI) recently partnered with YES Bank to launch RuPay On-the-Go contactless payments solutions, which is further pushing shoppers to opt for contactless payments, the survey added.

Further, the survey said that the digital payments platform has been opened by Google Pay for use in contactless UPI patents as well.

In terms of what shoppers shopped for during the season, the survey finds that gold and precious metal jewellery, which have been traditional festive gifting favorites, seem to have fallen out of favor this year.

This year, most shoppers were seen investing in tech gadgets. Electronic gadgets, according to the survey, are all set to command maximum consumer gifting budgets with close to 42% respondents showcasing increased propensity towards it.



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Is tokenisation the way forward? Here’s what the industry thinks, BFSI News, ET BFSI

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Tokenisation will help bring huge value to the digital payments space, and is likely to gain momentum in the coming months, said Ravi Varma Datla, Mastercard‘s vice president – digital products, South Asia.

Last month, the Reserve Bank of India issued guidelines, allowing card-on-file tokenisation. Tokenisation helps consumers to enter and save a 16-digit token on e-commerce or merchant platforms, instead of storing their card details.

“Card-on-File tokenisation enhances the safety and security of the entire transaction value chain in e-commerce payments. It builds trust and can significantly increase convenience for consumers and create efficiencies for merchants. It means there is no need for a consumer to enter his card number every time he transacts, or to login to an online shopping account to update their details due to redundant card credentials,” Datla said.

Last week, National Payments Corporation of India (NPCI) announced the tokenisation system for RuPay cards. The NPCI Tokenisation system will support tokenisation of cards as an alternative to storing card details with merchants.

“We are confident that the NPCI Tokenisation System (NTS) for the tokenisation of RuPay cards will instill further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely,” said Kunal Kalawatia, chief of products at NPCI.

Also read: What is tokenisation, and how can it ensure safe transactions?

When buying a product or service online, consumers are usually forced to store their credit or debit card details. This is where tokenisation plays a significant role in ensuring consumers’ safety.

“What makes this type of token unique is that it can be used just like your normal card for online payments but only by the merchant that requested it. This means that if a bad-guy or hacker gets their hands on a token – it simply cannot be used. For the sake of identification and reconciliation, RBI has permitted merchants to display the last 4 digits of the original card number to the consumers,” Datla said.

Datla added that as of today, customers have no single view of all the merchants where they have saved their card number. With tokenisation, customers can reach out to their respective banks and view the list of all the tokens saved at merchants and also request to delete or update them.

Recently, Visa launched its card-on-file tokenisation service in India. The company has enabled its tokenisation services across 130 countries. As a large number of shoppers make the shift to online payments, Sujai Raina, Visa’s India business development head, believes it will ensure a frictionless checkout experience for consumers, and drive higher payment success rates for merchants and issuers.

“We believe the RBI’s directive to roll out card-on-file tokenisation in addition to the earlier device-based tokenisation protocols, will help build a safe, secure and seamless environment for digital payments, thus enhancing consumer trust across digital platforms,” he said.

When asked Mastercard about its plan to launch its tokenisation services in India, Datla said the company is working with its partner banks, merchants, payment aggregators, and other stakeholders towards a smooth rollout.

So far, Mastercard has rolled out tokenisation for consumers in over 2,500 banks across the globe. The company has found that the tokenisation has enabled a safer payment ecosystem, and has also increased transaction volume across the digital channel to return greater revenue for merchants, Datla said.

Datla also believes that tokenisation will help make digital payments seamless. “By replacing sensitive payment data with digital tokens, a superior ecommerce experience is created which provides increased security, approval rates and a frictionless consumer experience,” Datla said.



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NPCI launches tokenisation of RuPay cards as safety measure, BFSI News, ET BFSI

Personal Finance

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New Delhi, Oct 20 (PTI) The National Payments Corporation of India (NPCI) on Wednesday announced the tokenisation system for RuPay cards to enhance the safety of card data. The NPCI Tokenisation System (NTS) is to support tokenisation of cards as an alternative to storing card details with merchants, NCPI said.

It will further enhance the safety of customers and provide a seamless shopping experience to them.

NPCI said the sensitive customer information will be stored in the form of an encrypted ‘token’ to help secure transactions, in accordance with RBI guidelines.

These tokens will allow payments to be processed without disclosing the customer details or allowing the payment intermediaries to store customer data that could breach security and privacy, it said.

With NTS, acquiring banks, aggregators, merchants and others can get themselves certified with NPCI and can play the role of token requestor to help save the token reference number against all card numbers saved.

All these businesses can maintain their RuPay consumer base utilising token reference on file (TROF) for future transactions initiated by their respective RuPay consumers, NPCI said.

The fool-proof and transparent system will ensure that no customer-sensitive information is leaked. Tokenisation will also help in reducing the friction in the payment process by providing a faster check-out experience to the customers.

“The RBI’s guidelines on card tokenisation is to enhance the safety of the digital payments ecosystem in the country.

“We are confident that the NPCI Tokenization System (NTS) for the tokenisation of RuPay cards will instill further trust in the millions of RuPay cardholders to carry out their day-to-day transactions securely,” Kunal Kalawatia, chief of products, National Payments Corporation of India, said.

He hoped that the unique card-on-file tokenisation solution will not only safeguard customers’ confidential data but will also further strengthen the overall digital payments environment. PTI KPM HRS hrs



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NPCI launches NTS platform for card tokenisation

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National Payments Corporation of India (NPCI) on Wednesday announced the launch of NPCI Tokenization system (NTS) to support tokenisation of cards as an alternate to storing card details with merchants.

“The NPCI Tokenization System (NTS) will support the tokenisation of RuPay cards to further enhance the safety of customers and provide a seamless shopping experience to consumers,” it said in a statement.

Also see: Visa launches CoF tokenisation service for Grofers, BigBasket and MakeMyTrip

With NTS, acquiring banks, aggregators, merchants and others can get themselves certified with NPCI and can play the role of Token Requestor to help save the token reference number (Token Reference On File or TROF) against all card numbers saved, it further said.

“All these businesses can maintain their RuPay consumer base utilising TROF for future transactions initiated by their respective RuPay consumers,” it said.

Tokenisation guidelines have to be met by January 1, 2022.

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NPCI is estimating 25 million new mandate registrations for recurring payments by the end of fiscal

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The National Payments Corporation of India (NPCI) is estimating a run rate of 25 million new mandates for customers getting registered every month for recurring payments by the end of this fiscal. The federal fintech firm is also looking at a target of processing one billion UPI transactions per day over the next three years.

Speaking at The Global FinTech Fest 2021, Dilip Asbe, Managing Director and CEO, NPCI said, “Last year we had about 22 billion UPI transaction volumes and this year we are expecting that to touch 40-42 billion. And annually the value is over one trillion dollars. There is still a possibility of 10X growth in digital payments. We should process about 50 billion transactions on a monthly basis and one billion per day over the next three years. There is a lot to be done, we have just started.”

“While I would assess that we would touch the one billion mark by the next five years, given that the government and regulators are keen on growing digital payments ecosystem at scale, we should aspire to reach one billion transactions a day in three years,” Asbe added.

Rajan Anandan, Managing Director, Sequoia India & Surge, who was conducting the chat with Asbe added, “We should make a national mission to get UPI to a hundred countries. That would make world a better place and that will create a massive number of global Indian payments companies.”

Recurring Payments

One of the initiatives NPCI is actively working on is to make recurring payments safe and secure by adding two-factor authentication and creating the right mandate for the customers.

Also read: Auto debit norms: Payments Council of India seeks extension for smooth transition

“We call it a layer of ‘auto pay’ wherein NPCI’s three-four existing companies are fighting for a share in that space. We have an auto pay layer on UPI, Rupay, NACH and Bharat Bill Payment System. These systems will compete with each other to get the mandate share in the market. We have been receiving 2 million new mandates registrations from customers for auto pay on UPI every month. NACH is also getting around 2 million. Rupay and BBPS are just starting in a month or so,” Asbe said.

“We want to exit the financial year with a run rate of 25 million new mandate registrations per month. I strongly believe the regulator believes in long-term gains,” he added.

Need for MDR

According to Asbe, there needs to be reasonable charges for MDR. As the volumes are growing, as an ecosystem they must set up a path.

He said, “We need to make it more cost effective for the ecosystem. While the government has been trying to make digital payments accessible to smaller local merchants by making MDR zero during the demonetisation phase in good faith, we are constantly having conversations with all the ministries involved, asking to set a reasonable charge and thankfully the finance minister announced some incentives in the budget.”

“The 10x growth will come through investments in customer onboarding, spreading awareness and customer protection. The merchant base needs to grow from 50 million active merchants to 100 million. Everybody in that supply chain needs to make money, at least to fund their IT investments and banks have to create scalable CBS (core banking solutions) processes to allow huge volumes of UPI transactions. We are hoping the government will very soon make an announcement on this,” he added.

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NPCI, YES Bank launch RuPay On-the-Go

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The National Payments Corporation of India (NPCI) has partnered with YES Bank to launch a contactless payments solutions — RuPay On-the-Go.

This was launched on Tuesday in association with fintech infrastructure partner, Neokred, and manufacturing partner- Seshaasai at the Global Fintech Festival 2021.

“RuPay On-the-Go will allow customers to make small and large value transactions from the accessories they wear every day. This innovative wearable payment solution would redefine the contactless payments space by eliminating the need to carry a physical card and enabling instantaneous payments with a simple ‘Tap, pay, go’ mechanism,” said a statement.

RuPay On-the-Go is an interoperable, open-loop solution that customers can use at RuPay contactless-enabled PoS at retail outlets and pay up to Rs 5,000 without the need to input the PIN. For payments above Rs 5,000, customers need to tap, followed by their PIN.

For online transactions, the BHIM YES Pay app provides a virtual RuPay card to customers that can be used for digital and e-commerce transactions, the statement further said.

“The wearable tech space is an integral part of driving contactless payments, and we are working toward building a secure and inclusive payments ecosystem with our partners,” said Praveena Rai, COO, NPCI.

Consumers without an existing YES Bank account can also avail of these wearables.

Anita Pai, COO, YES Bank said, “The RuPay On-the-Go smart accessories, such as keychains with tap-and-pay functionality, will enable customers to make digital payments securely, more easily and in style.”

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Federal Bank partners with NPCI for RuPay credit card

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Federal Bank has partnered with the National Payments Corporation of India (NPCI) to launch the Federal Bank RuPay Signet Contactless Credit Card.

“One of the major highlights of this card is, it comes with the lowest Annual Percentage Rate (APR) starting from just 5.88 per cent per annum,” the private sector lender said in a statement on Monday.

At present, the card is offered to existing customers of the bank.

The bank has adopted a ‘Digital First’ and the card immediately made available for use in FedMobile. The physical card will be delivered to the customer in due course.

Federal Bank had launched credit cards for existing customers in June this year and had an exclusive tie-up with Mastercard. This had got impacted after the Reserve Bank of India barred Mastercard from acquiring new customers.

Shalini Warrier, Executive Director, Federal Bank had said in July that the bank would restart issuance of credit cards within two months and was in talks with both Visa and RuPay.

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