payment systems in india

Ref: https://events.ccc.de/camp/2019/wiki/Session:Payment_Systems_in_India_(Rescheduled)

rbi

reserve bank of india

banks

Public

  • State Bank of India ($590B)
  • Punjab National Bank ($120B)

Private

  • HDFC ($220B)
  • ICICI ($140B)

Total More than 1500 banks.

Public=Govt is majority owner

npci

natonal payments corporation of india

  • umbrella organization
  • owned by banks
  • authorized by rbi
  • operates retail payments in india
  • not-for-profit

(not a government entity)

all the ways you can pay

digitally

numbers

  • adult population (800M)
  • bank accounts (1.6B)
  • debit card (660M)
  • credit card (30M)

(might be a few years old)

card payments

  • 3D Secure (2FA mandate)
  • RuPay Card network (run by NPCI)
  • 4M PoS devices

(PoS = Point of Sale)

NEFT/RTGS/IMPS

Bank-Bank transfer

  • RTGS: National Electronic Fund Transfer (run by RBI)
  • RTGS: Real Time Gross Settlement (run by RBI)
  • NEFT runs at 30 minute batches 24x7x365
  • IMPS is instant

historically:

  • NEFT would run once every business hour
  • RTGS would be real-time but only support high-value transactions to keep loads bearable

wallets

pre-payment-instrument

  • Gift Cards
  • Meal vouchers

(Things that are currency, but not really currency)

wallets = ppi

bank account -> wallet

your wallet = ledger

  • transactions
  • p2p transfers

sachet economy

  • wallet bloom
  • no 2FA!

NOV 09 2016

UPI

Unified Payments Interface

  • mobile-first
  • shared-banking-platform
  • works-across-banks
  • run by npci
  • 25+ apps on both Android/iOS
  1. authenticate with your phone number
  2. pick a bank account
  3. transact with your PIN for your bank account

current players:

  • PhonePe (owned by Flipkart->Walmart) (20-30%)
  • WhatsApp (FB) (in beta)
  • GPay (30-60%)
  • Paytm (5%)

interested in more?

  • Tuesday 1st Sep
  • 1730 UTC / 1300 EST / 2230 IST
  • (spoilers)

effect=explosions

## cbs core banking system ---