NPCI Posted ₹773 Crore Profit in FY22

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

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

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