,is i Speaking at an industry conference organized by the Indian Banks’ Association on Saturday, Shankar said it is a good example to understand how cautious banks should be. Of Business owned by non-banks.”
Shankar said that banks had failed to scale UPI in the initial days and have now defaulted. “Perhaps, there was a sense that these small-value transactions might be a relatively insignificant bill to put into your resources and effort to develop the necessary technology and internal ecosystem.” He added: “When a revolutionary technology comes out, it may initially affect a small part of the business. Scaling it up, improving on it and innovating to affect the rest of the business is just one small step.” away. You miss the first step.” , your train misses.”
The National Payments Corporation of India (NPCI) recently extended the deadline for existing third-party apps to comply with its regulations by two years. market share Guidelines for UPI Network. NPCI mandate required payment Apps holding more than 30% market share in terms of payment volume. The new deadline to comply with the rule is December 31, 2024.
Shankar said that the RBI was satisfied with the UPI volumes and the implementation of the market cap rule would bring down the cost. “We’ve seen it, it’s okay,” Shankar said. “Competition takes time to develop, we will have to wait for it to develop. And at this stage of time, maybe implementing it will cause some kind of friction in UPI.”
After implementing a pilot project for wholesale CBDCs, the central bank is now trying out a CBDC using blockchain.
“We will try many other use cases, the process is on,” Shankar said. “The next step would be to try a CBDC using blockchain. So, it’s mostly pilots looking at different technologies and figuring out what works best. Will try other currency markets.” “I can’t tell you exactly what we will start, but it will be different types of transactions, different markets and currency markets could be one of them,” he added. Wholesale CBDC pilots are ongoing.”