NPCI aims to handle 1B transactions every month
What's the story
The National Payments Corporation of India (NPCI) has announced its ambitious plan to process one billion monthly transactions through its new net banking switch, Banking Connect. The move comes as part of NPCI Bharat BillPay Limited (NBBL), which is currently handling 260 million transactions every month. The new system is designed to enhance the internet banking experience and provide regulators with better visibility into online transactions and customer support standards.
Technological innovation
Banking Connect: A game-changer in payment processing
Bharat Connect, which was launched by RBI Governor Sanjay Malhotra at the Global Fintech Festival earlier this year, is a major leap forward in payment processing. The system simplifies integration for banks and payment aggregators, making the whole process easier. It also ensures a consistent user interface across service providers to provide ease and familiarity to users.
User experience
A mobile-friendly solution with advanced security
Banking Connect is a mobile-friendly solution that doesn't impose any transaction limits. It allows unlimited transfers for different use cases, making it extremely versatile. The system also comes with advanced security measures like transaction monitoring and dispute management to ensure safe transactions. It requires minimal code changes from merchants and uses standardized APIs to avoid delays or drop-offs due to redirection or timeout errors commonly seen in existing net banking flow.
Market penetration
Adoption and future prospects
Banking Connect is already live with several banks, including HDFC Bank, ICICI Bank, SBI, YES Bank, AU Small Finance Bank, and Federal Bank. It has also been adopted by payment aggregators like Infibeam, PayU, Pinelabs, Cashfree, Razorpay, HDFC Bank Smart Gateway, Zoho, Easebuzz, Juspay, OPEN, SBI ePay. Kotak Mahindra Bank and Axis Bank are likely to adopt the switch soon.