RBI governor gives nod to NPCI to create interoperable system for internet banking

Reserve Bank of India governor Shaktikanta Das on Monday (March 4, 2024) said that the central bank has given the go-ahead to NPCI Bharat BillPay Ltd (NBBL) to create an interoperable system for internet banking.

The National Payments Corporation of India (NPCI) will create a platform this year in collaboration with Bharat Bill Payment System. 

he new interoperable system will facilitate quicker online banking settlement of funds for merchants.

The platform will make merchant payments easier.

This system can also reduce the merchant discount rate (MDR).

What is this system?

Currently, when we make payments to a merchant using online internet banking, it is not necessary that both the customer's bank and the merchant's bank are registered with the payment aggregator.

When this does not happen, money is transferred from the customer's bank to their personal account, then the customer's account deals with the merchant's personal account, and then the merchant's account deposits the money in his bank.

With the arrival of the new system, settlement in the internet banking payment system will be faster because all the personal accounts will deal with the new system, switch or the platform.