The government launched Unified Payment Interface (UPI) today. AP Hota, MD of National Payments Corporation of India (NPCI), which launched the product, said 29 banks have opted for UPI. They will be part of the system by June 29. As of now only 19 banks are on board.
The UPI is soon likely to change the payment scenario in India from cash to digital.
According to Hota, the interface, which is the most sophisticated platform in the world, will also lead to a higher degree of adoption of mobile for payments.
The former chairman of Unique Identification Authority of India (UIDAI), Nandan Nilekani said it is just a matter of time before the entire population is covered by Aadhaar and so it can be used as one of the identification metrics for UPI. However, one can also use the standard bank account code, debit card etc., said Nilekani.
He said most of the country's adults are already part of Aadhar and mostly children are left to be covered. The government seems to be committed to expand Aadhar.
The next big thing is to see how the government used Aadhar for passing on subsidies like LPG, food, water etc. One is likely to see the use of Aadhar beyond just the government regulated sectors like banking, telecom and insurance.
According to him, UPI uses Aadhar with the best encryption services and that the data is not shared with anyone without the customer's consent.
For the entire interview, watch video
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