NPCI Introduces New Features to Scale the UPI Ecosystem

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Credit Line on UPI:

NPCI is facilitating credit-based transactions on the UPI platform. Users can make payments through credit by connecting pre-approved digital credit lines from banks. This feature streamlines the payment process, with the payment flow remaining consistent with regular UPI transactions. This initiative aims to make credit more accessible to a broader customer base and reduce dependence on traditional credit distribution methods. Initially, third-party payment providers like Paytm, Google Pay, and HDFC PayZapp will offer this service, and NPCI is collaborating with major banks like HDFC Bank and ICICI Bank to ensure seamless digital onboarding.

UPI Lite X for Offline Payments:

UPI Lite X allows users to send and receive money even when offline. This extends the use of UPI to areas with limited connectivity, such as flights, underground metro stations, and other merchant locations. It builds upon the earlier UPI Lite service, which enabled small-ticket transactions without requiring a PIN.

NFC-Enabled Tap & Pay:

NPCI introduced UPI Tap & Pay, a feature that enables users to make payments using near field communication (NFC) technology. This allows for convenient and secure contactless payments.

Conclusion:

These initiatives align with NPCI’s goal of fostering financial inclusion and transitioning India toward a more formalized digital economy. Nandan Nilekani, Infosys co-founder and non-executive chairman, emphasized the transformative potential of the NPCI ecosystem in facilitating this transition. As millions of people gain digital IDs and mobile connections, access to credit, capital, and business opportunities is expected to drive significant formalization of the country’s economy in the coming years. These developments highlight the importance of India’s digital public infrastructure in this journey towards financial inclusion and economic growth.

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Aditya Manekar

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