NPCI To Launch Interoperable Payment System for Internet Banking – The Reserve Bank of India has given approval to the National Payment Corporation of India (NPCI) Bharat BillPay Ltd to implement an interoperable payment system for internet banking transactions. The Central bank has given approval to NPCI Bharat BillPay Ltd (NBBL) to launch interoperable payment system for internet banking to facilitate quicker settlement of funds for merchants.
“We expect the launch of this interoperable payment system for internet banking during the current calendar year. The new system will facilitate quicker settlement of funds for merchants,” Governor Das said during a digital payments awareness event organised by the RBI. Internet banking, one of the oldest channels for online merchant payment transactions, is a favoured channel for payments like income tax, insurance premiums, mutual fund payments and e-commerce, but the current system faces certain challenges, Das said.
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Currently, the Internet Banking transactions processed through Payment Aggregators (PAs) are not interoperable, i.e., a bank is required to separately integrate with each PA of different online merchants. As a result, if a customer wants to make payment from his bank account to a certain merchant, the merchant’s PA and customer’s bank must have an arrangement. Given the multiple number of payment aggregators, it is difficult for each bank to integrate with each PA.