Create UPI like platform for credit: Ashwini Vaishnaw to banks

Create UPI like platform for credit: Ashwini Vaishnaw to banks

With the aim of addressing the needs of the bottom of the pyramid, union minister for electronics and IT, Ashwini Vaishnaw asked financial services firms and banks to create a UPI like platform for providing quick and easy credit to small and medium enterprise, industries and small businessmen.

Speaking at the concluding day of the week-long AzadiKaAmritMahotsav organised by the ministry of electronics and IT, Vaishnaw said that firms have instruments such as Aadhaar, UPI, mobile, digiLocker etc at their disposal, and they should come up with proof of concepts in the next three months.

“You (bankers) have today a very good ecosystem of Aadhar, Digilocker and UPI to take up the challenge. Work on the challenge for the next three months, come back and I will work the whole day with you to look at the concepts you have brought,” he said.

India has taken a lead globally when it comes to creating digital payment solutions and they proved to be very helpful especially during the 18 months of the pandemic since the government was able to directly transfer benefits to the people of the country.

“The performance of India in digital payment space is the envy of nations around the world that years ago thought they are ahead in technology and innovation,” he said.

Apart from several co-branded Rupay cards with banks like Kotak, Yes Bank and Punjab National Bank, the National Payments Council of India, also launched its Rupay-on-the-Go platform which offers payments solutions through wearables such as smartwatches and is aimed at re-defining contactless payments.

The Rupay-on-the-Go solution was launched on Sunday by Bank of Baroda and City Union Bank and more merchants are likely to come on board in the coming future. India Post Payments Bank, Punjab National Bank, Kotak Bank, YES Bank, Indian Overseas Bank, ICICI Bank, Indian Bank, Bank of Maharashtra, and City Union Bank also launched Contactless Credit cards on the RuPay network.

With an idea of empowering small merchants Union Bank announced an Android-based SOFTPOS mobile app for point of sales, which is expected to further accelerate digital payment adoption in the country.

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