NPCI is preparing to start interoperability in net banking and mobile banking payments. This work will start in the next few months. Initially, five-six banks will be connected. The rest of the banks will be connected in the later stages. This will make online payments easier.
New Delhi: The National Payments Corporation of India (NPCI) is preparing to start interoperability between net banking and mobile banking payments in collaboration with five-six banks. According to sources, although the date of launch of the first phase has not been decided yet, this work will start in the next few months. The rest of the banks will join in the later phases. This initiative is being run by NPCI Bharat BillPay, a Mumbai-based subsidiary of NPCI. A source told Economic Times, ICICI Bank and HDFC Bank are way ahead in this work. Three-four more banks are also joining it. He said that although it is not yet decided when this facility will start, but it will start soon in the banks of the first phase.
What will be the benefit?
When net banking is interlinked, customers will be able to make payments using net banking of any bank while purchasing goods from e-commerce websites. A source said that currently banks have to enter into an agreement with payment aggregators, who then connect merchants for net banking payments. When there is interlinking, this problem will end. Then every bank’s payment will be valid everywhere. This will also reduce the pressure on UPI payments. UPI has grown very fast in the last few years, due to which debit card and net banking payments have reduced. Secondly, when big banks start this service, people will start using it. Then gradually small banks will also join it.
How reliable is it?
Experts say that for large payments like insurance premium or tax, people prefer to make payments through their bank’s app or website. The success rate of transactions through these is high, so this method is considered more reliable for large payments.
How does it happen now?
Currently, for payments through net banking, merchants and aggregators connect to the net banking system of big banks through payment gateway companies like Mumbai-based BillDesk. Unlike card or UPI payments, net banking is usually for very large transactions.
How many transactions take place?
According to Central Bank data, about 420 million payment transactions took place in October alone. A total of more than Rs 100 lakh crore was transacted through these. That is, the average amount of every transaction was more than Rs 2.5 lakh.
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