Banks have ceded the unified payments interface space to non-banks, Reserve Bank of India deputy governor T Rabi Sankar has said. Sankar also said the RBI was considering more use cases for the expansion of the central bank digital currency (CBDC), like in the money market.
“UPI is a good example to understand how alert banks ought to be,” Sankar said, speaking at an industry conference organised by the Indian Banks Association on Saturday. “How’s it that a system of transactions between two bank accounts has evolved in a way where most of the business is owned by non-banks.”
The National Payments Corporation of India (NPCI) recently extended the deadline by two years for existing third-party apps to comply with its market share guidelines for the UPI network.