NPCI Posted ₹773 Crore Profit in FY22

Time to boycott UPI and rupay. All crony capitalism of modi. 

Previously two US baked giants like Visa & MasterCard doing duopoly,

Nobody said a single thing

Now an Indian company making great progress and people giving this kind of statement

rusty.james wrote:

Previously two US baked giants like Visa & MasterCard doing duopoly,

Nobody said a single thing

Now an Indian company making great progress and people giving this kind of statement

Yup.

Today, the US govt has a big hand behind the success of Visa and Mastercard.

Before 2008, Visa and Mastercard were non profit company, same like NPCI in India.

Today, if the US govt wants to impose sanctions on any country, it does so with the help of Visa, Mastercard, Diners club, AMEX and SWIFT.

Just few days ago, Uday Kotak said the status of American dollar as a reserve dollar gives it power to regulate international trade, putting other countries in a dependent position while transacting.

@babayanga5

Nice. Time to bring back Amazon Add Money offer

+🔥 Afaik this profit is not true economic profit let me explain.

Govt / regulators enabled a lot of these txns at subsidised rate to encourage and build this stack.

So essentially eco-system players are taking hit to their P&L instead of hit to NPCI P&L. Essentially loading costs onto their individual P&L and not common P&L.

And since many large players in eco-system are in fact shareholders of NPCI, they are okay with it.

It is something like partners of startup not taking salary to show venture as (more) profitable.

pingpong wrote:

+🔥 Afaik this profit is not true economic profit let me explain.

Govt / regulators enabled a lot of these txns at subsidised rate to encourage and build this stack.

So essentially eco-system players are taking hit to their P&L instead of hit to NPCI P&L. Essentially loading costs onto their individual P&L and not common P&L.

And since many large players in eco-system are in fact shareholders of NPCI, they are okay with it.

It is something like partners of startup not taking salary to show venture as (more) profitable.

Well said
Still a Good News
It is need of the hour for NPCI to grow with much more pace and spread across the world

FYI - NPCI spent ₹0.53 to Earn a Single Unit of Operating Revenue in FY22

Out of this Rs.0.53, dimers are responsible for Rs.0.50 via amazon wallet Friday offer.

@abhishek012

@pingpong

pingpong wrote:

+🔥 Afaik this profit is not true economic profit let me explain.

Govt / regulators enabled a lot of these txns at subsidised rate to encourage and build this stack.

So essentially eco-system players are taking hit to their P&L instead of hit to NPCI P&L. Essentially loading costs onto their individual P&L and not common P&L.

And since many large players in eco-system are in fact shareholders of NPCI, they are okay with it.

It is something like partners of startup not taking salary to show venture as (more) profitable.

Likely reason why many banks(especially psu) were reluctant to issue rupay platinum debit cards when amazon Friday offer became quite popular.

guest_999 wrote:

FYI - NPCI spent ₹0.53 to Earn a Single Unit of Operating Revenue in FY22

Out of this Rs.0.53, dimers are responsible for Rs.0.50 via amazon wallet Friday offer.

@abhishek012

@pingpong

And most of these transactions were money rotations only by transferring back to bank by Amazonpay upi. With 20% instant discount and UPI transfer offers, it's impossible to generate any profit from this business model. It's the banks issuing Rupay cards, who have absorbed the financial hit of deep discounts and NPCI charges/profit. The turnover from Rupay ecom and POS transactions is still negligible in its overall financials, nowhere close to challenging monopoly of VISA & MASTER networks

pingpong wrote:

+🔥 Afaik this profit is not true economic profit let me explain.

Govt / regulators enabled a lot of these txns at subsidised rate to encourage and build this stack.

So essentially eco-system players are taking hit to their P&L instead of hit to NPCI P&L. Essentially loading costs onto their individual P&L and not common P&L.

And since many large players in eco-system are in fact shareholders of NPCI, they are okay with it.

It is something like partners of startup not taking salary to show venture as (more) profitable.

First understand that NPCI provides not only RuPay or UPI.

NPCI is the umbrella organization, almost all retail payments and settlements in India are routed through NPCI. NPCI charges some fee for all payment settlement.

Indirectly, NPCI helps banks and startup companies to reduce their infra cost, transaction settlement cost etc.

I personally believe all banks and startup companies in India combined saved billions of dollar annually from NPCI.

1200+ banks available in India but before RuPay, only 40-50 banks issue visa/mastercard debit cards.

Reason ? these banks can't afford Visa/mastercard network joining cost, card issuing fees and card operating cost etc.

You probably use Slice Visa card, Akudo visa card etc but in the backend, which company provide all technical assistance, infra cost etc ? Its NPCI.

Without NPCI, all Unicorn startup companies like Slice, Onecard, Cred, Zeta, Razorpay etc may not exist today. India get huge foreign investment through digital payment startup companies and who help them to expand and grow ? NPCI.

And it's not just about startup companies. All Small finance banks, payments banks etc may not exist today without NPCI.

And here I am not going to talk about that right now, the benefits that small towns, villages, small businesses and poor to middle class people have got from RuPay and UPI (uske liye toh pura essay likhna par jayega). 😀😀

Before NPCI, banks individually handle almost all types of transactions and settlements. Due to which the bank's operating expenses became very high and there was also a big security risk.

For example - suppose before NPCI, banks spend 100 crore to maintain all inter-bank transaction and settlement. Now its reduce to 10 crore because all shareholder banks combined pay very small amount to NPCI + all other banks and small banks also get huge benefit from NPCI.

@Dastro
@guest_999 
@DimeDime

aam_aadmi wrote:

And most of these transactions were money rotations only by transferring back to bank by Amazonpay upi. With 20% instant discount and UPI transfer offers, it's impossible to generate any profit from this business model. It's the banks issuing Rupay cards, who have absorbed the financial hit of deep discounts and NPCI charges/profit.

UPI cashback money paid by all UPI startup companies.

Amazon add money offer 80% amount paid by Amazon and 20% NPCI.

guest_999 wrote:
Likely reason why many banks(especially psu) were reluctant to issue rupay platinum debit cards when amazon Friday offer became quite popular.

Nothing like that, it's location dependent and there was a RuPay chip shortage on PSU banks.

It also came in the news that there is a shortage of RuPay chips in banks.

NPCI was created to help tier 2, tier 3 and other small cities people and poor people in India that's why banks first focus to issue RuPay jan dhan card, RuPay classic card, RuPay Kisan card, RuPay Mudra card etc. In case of shortage of RuPay EMV chips, these cards will be given first priority.

abhishek012 wrote:
First understand that NPCI provides not only RuPay or UPI.

NPCI is the umbrella organization, almost all retail payments and settlements in India are routed through NPCI. NPCI charges some fee for all payment settlement.

Indirectly, NPCI helps banks and startup companies to reduce their infra cost, transaction settlement cost etc.

I personally believe all banks and startup companies in India combined saved billions of dollar annually from NPCI.

1200+ banks available in India but before RuPay, only 40-50 banks issue visa/mastercard debit cards.

Reason ? these banks can't afford Visa/mastercard network joining cost, card issuing fees and card operating cost etc.

You probably use Slice Visa card, Akudo visa card etc but in the backend, which company provide all technical assistance, infra cost etc ? Its NPCI.

Without NPCI, all Unicorn startup companies like Slice, Onecard, Cred, Zeta, Razorpay etc may not exist today. India get huge foreign investment through digital payment startup companies and who help them to expand and grow ? NPCI.

And it's not just about startup companies. All Small finance banks, payments banks etc may not exist today without NPCI.

And here I am not going to talk about that right now, the benefits that small towns, villages, small businesses and poor to middle class people have got from RuPay and UPI (uske liye toh pura essay likhna par jayega). 😀😀

Before NPCI, banks individually handle almost all types of transactions and settlements. Due to which the bank's operating expenses became very high and there was also a big security risk.

For example - suppose before NPCI, banks spend 100 crore to maintain all inter-bank transaction and settlement. Now its reduce to 10 crore because all shareholder banks combined pay very small amount to NPCI + all other banks and small banks also get huge benefit from NPCI.

@Dastro
@guest_999 
@DimeDime

"almost all retail payments and settlements in India are routed through NPCI. NPCI charges some fee for all payment settlement."

Before NPCI, who charged these fees? What difference does it make qualitatively now?

manehari wrote:
Nice. Time to bring back Amazon Add Money offer

Truth has been spoken.

@abhishek012 Rupa lover do something. my Rupay cards are being unused for whole 1 month.

abhishek012 wrote:
UPI cashback money paid by all UPI startup companies.

Amazon add money offer 80% amount paid by Amazon and 20% NPCI.

Then why this offer was limited to Rupay platinum and not for all Rupay cards? Why Paytm Rupay platinum was excluded?

ConfirmPassword wrote:

Content has been removed!

Sorry I forgot npci and upi and rupay is a product of congress era. Full support.

aam_aadmi wrote:

"almost all retail payments and settlements in India are routed through NPCI. NPCI charges some fee for all payment settlement."

Before NPCI, who charged these fees? What difference does it make qualitatively now?

https://www.google.com/url?sa=t&source=web&...

Badi pdf hai. Kahin na kahin toh answer hoga aapke liye. 

P_A_N_K_A_J wrote:

Truth has been spoken.

@abhishek012 Rupa lover do something. my Rupay cards are being unused for whole 1 month.

"Rupa lover" 😆

"Rupa lover do something" 😆😆

P_A_N_K_A_J bro comment toh badaa toing hai 😆😆😆

abhishek012 wrote:

Nothing like that, it's location dependent and there was a RuPay chip shortage on PSU banks.

It also came in the news that there is a shortage of RuPay chips in banks.

NPCI was created to help tier 2, tier 3 and other small cities people and poor people in India that's why banks first focus to issue RuPay jan dhan card, RuPay classic card, RuPay Kisan card, RuPay Mudra card etc. In case of shortage of RuPay EMV chips, these cards will be given first priority.

Chip shortage was a result of mandatory conversion of all debit/credit cards from magnetic strip to chip based cards, nothing Rupay specific.

aam_aadmi wrote:

"almost all retail payments and settlements in India are routed through NPCI. NPCI charges some fee for all payment settlement."

Before NPCI, who charged these fees? What difference does it make qualitatively now?

Before NPCI. RBI and Banks handle all retail payments and settlements in India.

Now all Indian ATM transactions (including Indian bank issue Visa/mastercard/Amex/Diners Club and card issue outside India like JCB, UnionPay, Visa, Mastercard, Discover/Diners club/ AMEX etc), Cheque transaction/Positive Pay System in CTS etc all routed through NPCI in India.

IMPS like instant payment system also exist before NPCI, only 6 or 7 banks was launch instant payment service but all failed.

Reason for failure ? Only 6 or 7 banks supported instant payment service and India's largest PSU banks are not a part of this instant payment service. Per transaction charge Rs25+. In fact, NEFT transaction was cheaper.

Before RuPay, RBI and some Indian banks launched domestic payment cards which worked at ATMs and POS in India but all failed.

Reason for failure ? very limited acceptance and some cards worked only on bank's own ATMs or POS machines.

List of services where NPCI earns money and also reduce the banks operating cost -

NFS (all ATM transactions including Visa/mastercard/Amex/diners club etc)
CTS (Cheque Truncation System)
NACH (This system can be used to make bulk transactions towards distribution of subsidies, dividends, salaries, pension, etc)
NETC (FASTag)
DBT (This scheme or program aims to establish a Giro system to transfer subsidies directly to the people through their linked bank accounts).
IMPS
e-RUPI
UPI One World
NBBL (Bharat bill pay is also "For profit" company)
NIPL (NPCI International is also "For profit" company)
UPI IPO
UPI AutoPay (UPI recurring payment)
PPI on UPI,
UPI OD (Overdraft account UPI transaction)
B2B UPI (Business to Business UPI transaction)
B2C UPI (Business to Customer UPI transaction)
UPI Remittance
AePS (Financial transactions through Aadhaar-based authentication)
UPI-PayNow (India-Singapore instant payment service)
UPI Nepal (Nepal deploy UPI payment service to their Nepal citizens)
UPI International (UPI International transactions for Indians)
RuPay Prepaid card
RuPay Credit Card
Credit on UPI (currently, this service is under testing mode but soon MDR charges will started within a few months)
JCB, UnionPay, NETS, Discover Global card etc (30% of foreigners who came to India use RuPay network in India, NPCI charges some fees from JCB, UnionPay etc)
JCB, Unionpay etc logos (NPCI also charge some fees to put JCB, Unionpay etc card logos on Indian ATMs, POS machines etc)

Recently, NPCI Bharat BillPay Ltd Launches NOCS Platform to Further Enhance the Scalability of ONDC (I don't know much about this platform yet but NBBL is a for profit company they will definitely charge something).

NPCI plans to deploy or expand UPI and RuPay card acceptance to many African, Middle East, Asian, European and USA. NPCI will earn money from other countries.

Only 2 NPCI services are subsidised by govt -

RuPay debit card in India
UPI India (Bank account link P2P and P2M transaction)

aam_aadmi wrote:

Chip shortage was a result of mandatory conversion of all debit/credit cards from magnetic strip to chip based cards, nothing Rupay specific.

Read news on Google. After the pandemic, there was a worldwide shortage of EMV chips. RuPay card was the most affected.

The trigger for the representation arose out of the difficulty faced by banks in providing RuPay cards to account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) which aims to expand affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions - https://www.thehindubusinessline.com/money-and-...

Also read here "they have shortage of even the basic rupay cards" - https://www.desidime.com/discussions/why-there-...

aam_aadmi wrote:

Then why this offer was limited to Rupay platinum and not for all Rupay cards? Why Paytm Rupay platinum was excluded?

RuPay Platinum is premium card.

Only premium and super premium customers will get premium offers.

Why NPCI will offer premium services to basic RuPay card ?

Paytm bank already downgrade their RuPay Platinum DC to RuPay classic.

abhishek012 wrote:

RuPay Platinum is premium card.

Only premium and super premium customers will get premium offers.

Why NPCI will offer premium services to basic RuPay card ?

Paytm bank already downgrade their RuPay Platinum DC to RuPay classic.

Baaki sab thik hai. But your last point is not the answer to the 2nd question of @aam_aadmi about why Paytm RuPay Platinum DC was excluded in the first place, well before downgrade.

UniqueDimer wrote:
Baaki sab thik hai. But your last point is not the answer to the 2nd question of @aam_aadmi about why Paytm RuPay Platinum DC was excluded in the first place, well before downgrade.

This is not a new thing. Banks and card networks always exluded cards that are easy to issue or you will get some other benefit.

Visa also excluded ICICI, HDFC bank Visa Platinum debit cards from Premium offers.

SBI Card also excluded SBI Cashback Visa credit card from SBI discount offers.

This has always happened. I can say with 100% confidence, In future you will see more banks will excluded from NPCI/RuPay offers. This is just the beginning, RuPay card is following the same path as the Visa card.

abhishek012 wrote:
This is not a new thing. Banks and card networks always exluded cards that are easy to issue or you will get some other benefit.

Visa also excluded ICICI, HDFC bank Visa Platinum debit cards from Premium offers.

SBI Card also excluded SBI Cashback Visa credit card from SBI discount offers.

This has always happened. I can say with 100% confidence, In future you will see more banks will excluded from NPCI/RuPay offers. This is just the beginning, RuPay card is following the same path as the Visa card.

Here the issue is that, according to you, liability of offers were borne by merchants and NPCI, then why banks should restrict issuing Rupay platinum cards and offers.

Visa and MasterCard offers are fully funded by the network and banks, alongwith variable annual subscription fees for each variant. This case cannot be compared with Rupay, where banks didn't bear any cost, according to you, although there is no reliable news article supporting your claim.

https://www.linkedin.com/posts/activity-7057561...

More details on the financial eco systems

NPCI has really made great innovation in Indian Market. This is really a revolutionary considering its growth in the past 2,3 years

babayanga5 wrote:

Time to boycott UPI and rupay. All crony capitalism of modi. 

Seriously, sometimes I wonder if you guys were imported to India because of the hate and itch over Indian development. The way Congress destroyed and looted the country over 70 years, you guys consume fevicol. Even NPCI was not allowed to develope under Congress until Modi released it and pushed the stakeholders.

aam_aadmi wrote:

Here the issue is that, according to you, liability of offers were borne by merchants and NPCI, then why banks should restrict issuing Rupay platinum cards and offers.

Visa and MasterCard offers are fully funded by the network and banks, alongwith variable annual subscription fees for each variant. This case cannot be compared with Rupay, where banks didn't bear any cost, according to you, although there is no reliable news article supporting your claim.

Visa and MasterCard offers are also funded by merchants. It also depends on what kind of offers you are talking about.

For example - Amazon add money offer funded by Amazon and RuPay.

But RuPay Selected Wellness debit/credit card benefit is funded by RuPay and Banks.