After BoM case, NPCI to be cautious over UPI for specific banks

After BoM case, NPCI to be cautious over UPI for specific banks

Jescilia KarayamparambilUpdated: Thursday, May 30, 2019, 07:56 AM IST
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Axis bank’s Rajiv Anand, NPCI’s A P Hota, Reliance Retail’s V Subramaniam and Innoviti Payment Solutions’ Rajeev Agrawal, at launch of India’s first in-store UPI payments facility. |

Mumbai: On February, Bank of Maharashtra (BoM) reported to National Payment Corporation of India (NPCI) about an illegal transaction which cost the bank losses worth Rs 25 crore. Due to this incident, NPCI has decided to be very careful before allowing any new bank-specific UPI.

NPCI is learning new things due to this issue, stated NPCI, MD and CEO, A P Hota. “We are not allowing any banks to join the UPI system till the time there is thorough reconciliation process. They have to be audited by the best of the audit professionals.” He also added that the banks that have already joined will not go through the new process.

“There are 44 banks already that have UPI. Getting the 45th bank will be a tough job…,” he added. He also added that the audit process would not be challenging but would be more or less like giving them helping hand to reach those standards set for UPI. Hota said this during the launch of first in-store UPI payment facility by NPCI and Reliance.

Commenting about BoM, NPCI stated that it was a bug which was discovered by a group of people in Aurangabad who made use of the opportunity to transfer the money even thought the balance was low. “The recovery process has started,” said Hota. “They have recovered some amount and some amount is still being recovered.” He also added four other banks are provided the same solution by the service provider Infrasoft Tech but there were no such problems with those banks.“The four banks have done internal audit and they are quite safe,” he added.

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What is expected in the near future

Aadhaar Pay will be launched on April 14. 16 banks are ready and NPCI in talks with 9 more banks.

By September 2017, NPCI is looking at 5.5 million point-of-sales (POS) machines. The new terminals will include traditional POS, QR code-enabled, Aadhaar-enabled.

25 billion digital payment expected in 2016-17

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