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NIPL Ties Up With Central Bank Of Peru For…

5 June 2024
by admin

New Delhi: NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) announced a partnership on Wednesday to enable the deployment of a UPI-like real-time payments system in Peru.

This collaboration makes Peru the first country in South America to adopt Unified Payment Interface (UPI) technology, a symbol of India’s pioneering excellence in digital payments. The partnership will empower the Central Reserve Bank of Peru to establish a reliable and efficient real-time payment platform within the country.

This innovative system facilitates instant payments between individuals and businesses, thereby reducing reliance on cash-based transactions and expanding the use of digital payments to Peru’s large unbanked population.

“Our partnership with the BCRP aims to strengthen Peru’s financial infrastructure, to foster economic growth. We will be working together to address our common objective of promoting digital payments, financial inclusion, cost optimization, and transparency in the payment landscape, with scope for further scalability and adaptability, to embrace future technological advancements and market demands. It also reflects on our commitment towards advancing digital public goods across the globe” said Ritesh Shukla, CEO of NPCI International.

UPI’s collaborative and open banking ethos enables greater connectivity and interoperability with both domestic and international payment networks and will foster innovation and resilience in the Peruvian payment ecosystem.

The partnership between India and Peru aims to fortify Peru’s financial infrastructure and spur its economic growth. The new infrastructure of the partnership will introduce accessible payment services, simplifying financial transactions for all residents of Peru. It will help in promoting digital payments, fostering financial inclusivity, and enhancing the efficiency and affordability of transactions in the country.

“We are delighted by this agreement with our new strategic partner, NPCI International. We believe this marks a significant step in strengthening and modernizing our payment system, aiming to expand access to digital payments in Peru. The support of the Reserve Bank of India has been a cornerstone of this agreement.

The BCRP aims to promote financial inclusion, security, and efficiency, and to introduce new use cases in digital payments. Additionally, we consider that this new infrastructure will play a fundamental role in fostering innovation and in allowing new participants to enter the Peruvian ecosystem” said Julio Velarde, Governor of the BCRP.

Science & Environment

Why Apple had to install currency note counting machines…

25 May 2024
by admin

Apple encountered an unexpected hurdle shortly after launching two company-owned stores in India in April of the previous year – a significant number of customers preferred to pay in cash. This development led the iPhone manufacturer to install currency note counting machines in both its Mumbai and Delhi stores.
Individuals familiar with the matter told ET that cash payments account for 7-9% of the American company’s sales in its two Indian stores, a stark contrast to the less than 1% or even zero cash transactions in its US or European outlets.Customers continue to flock to the stores with bundles of cash to purchase mobile phones or computers.
It comes as no surprise that Quora, a social question-and-answer website, is inundated with inquiries from consumers regarding the possibility of making cash payments at Apple stores in India, sources told ET. One of the individuals, who wished to remain anonymous, noted that the proportion of customers purchasing Apple products with cash is higher in the Delhi store compared to the Mumbai store.

Currency in circulation

The two stores in India have a direct reporting line to the Apple retail team in the US, rather than to the Apple India sales operations. Their sales are also included in the global financial records.
Apple, however, is not the only company grappling with cash payments in India. The government has implemented a cash transaction limit of Rs 2 lakh per person per transaction, per day, or per event and occasion since 2017. This measure aims to encourage digital payments and curb black money.
The amount of cash circulating in India has seen a significant increase, rising from Rs 13.35 lakh crore in March 2017 to Rs 35.15 lakh crore in March 2023, as reported by ET last month.
This growth highlights the continued importance of cash as a means of transaction, despite the substantial increase in digital payments through Unified Payments Interface (UPI), which reached Rs 19.64 lakh crore at the end of April 2023, up from Rs 2,425 crore in March 2017, according to data from the National Payments Corporation of India.
Also Read | 5 lakh ‘Apployments’: Apple ecosystem to create huge number of jobs in 3 years; iPhone maker may move half its supply chain from China to India
The Federation of Automobile Dealers Associations (FADA) estimates that between 15% and 20% of car purchases in India are self-funded, with buyers paying up to Rs 2 lakh in cash upfront, even for luxury vehicles. The remaining balance can be paid through various methods, including account payee cheques, bank drafts, electronic clearing systems, net banking, or debit cards.
Mercedes-Benz India, a German luxury carmaker, has observed that cash and self-funded purchases account for a higher share of 25% in Mumbai and Bengaluru, compared to 15% in other markets across the country.
Santosh Iyer, managing director of Mercedes Benz India, was quoted as saying, “Almost 20% of the customers opt for an all-cash purchase.” An anonymous car dealer in Delhi expressed their frustration when a buyer wanted to purchase a super luxury car entirely with cash.
Manish Raj Singhania, president of FADA, explains that many customers prefer not to avail financing options to avoid paying interest and instead choose to pay in full using their savings.
Some buyers may not have the necessary documents, such as income tax returns, to secure a bank loan or may not be considered credit-worthy. These buyers, present in both rural and urban markets, make payments using a combination of cash (up to the government-regulated limit of Rs 2 lakh), cheques, and real-time gross settlement (RTGS) funds transfers between bank accounts.

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NIPL Ties Up With Central Bank Of Peru For…

Why Apple had to install currency note counting machines…