NPCI incorporates NPCI BHIM Services as a wholly owned subsidiary

Retail payments regulator National Payments Corporation of India (NPCI) said it has incorporated NPCI BHIM Services Ltd. (NBSL) (earlier known as Bharat Interface for Money–BHIM) as a wholly owned subsidiary. Lalitha Nataraj will lead the subsidiary as the Chief Executive Officer (CEO) and Rahul Handa as the Chief Business Officer (CBO). 

In a statement, NPCI said the development is aimed at meeting the growing demand for digital transactions and evolving market expectations while keeping pace with innovation and rapidly shifting customer preferences. Additionally, it aims to promote financial inclusion.

The incorporation of NBSL underscores NPCI's dedication to enabling digital payments and financial inclusivity nationwide and globally. This development aligns with NPCI's mission to enhance digital payment systems and expand financial services to all.

NPCI developed the Bharat Interface for Money (BHIM) app, which was officially launched by Prime Minister Narendra Modi in 2016. BHIM facilitates users in making direct bank payments and requesting money from individuals who are on the Unified Payments Interface (UPI) platform.

In a similar strategic move in 2021, the NPCI took the decision to transfer the mandates of the Bharat Bill Payment System to a newly established subsidiary named NPCI Bharat BillPay Limited. This action involved segregating its automated bill payment operations from the primary organization, reflecting a trend of creating specialized entities for distinct business verticals within the NPCI ecosystem.

In the field of digital payments in India, PhonePe and Google Pay collectively handle approximately 85% of UPI transactions, prompting discussions about a potential duopoly in the market.

Specifically, in the month of June, PhonePe managed 6.7 billion transactions while Google Pay oversaw 5.1 billion transactions. In contrast, the BHIM app facilitated 22.72 million UPI transactions during the same period, representing a mere 0.16% share of the total payment volumes.