NPCI is The National Payments Corporation of India (NPCI), and it’s responsible for all retail payment transactions in India. It also provides cheque clearance services.
It’s made up of 56 financial institutions which make up the shareholders board. NPCI was formed with the support and guidance of the Indian Banks of Association together with the Reserve Bank of India. With the rise in the number of transactions, the NCPI is mulling on developing a highly scalable solution that is not only resilient but also highly dependable.
Features in Blockchain That NCPI Hopes to Harness to Its Advantage
Per NCPI notification, the agency hopes to leverage its tech to develop an open source blockchain solution that is highly scalable, real time, and it’s resilient. Furthermore, blockchain is made up of blocks which make transactions more secure and transparent.
The latter feature comes in handy at enabling users together with the firm offering these services to track transactions easily. Moreover, records of transactions are stored on the distributed ledger and accessing them would be very easy. In addition to integrating a blockchain solution into its current system, blockchain will automate everything making NCPI operations more efficient.
NPCI Floats an Express of Interest (EOI) Order
In a bid to get the best firm to handle developing of the distributed ledger, an EOI order was floated, and doors were opened for a bidding war. Entities interested can now place in their proposals for consideration to develop NPCI distributed ledger.
Besides that, NPCI is also receiving bids for selection of Liaisoning Consultant (LC). The latter will be responsible for acquiring of End-to-End Statutory permissions for the Construction of Captive Data Center (CDC) in Hyderabad and Chennai.
While NCPI is now looking to integrate blockchain into its current systems, it has already developed an instant payment system known as Unified Payments Interface (UPI). UPI is gaining traction among Indians and has seen its number of transactions soar from Rs. 3.1 lakh crore to Rs 1.33 lakh crore from August 2016 to March 2019. With the integration of blockchain into its systems, the number of transactions will rise significantly.