National Payments Corporation of India and the Remaking of Payments in India

Categories : Regulation and Payment System Governance, Regulation of Digital Financial Services

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Author: CGAP

The lessons learned from the NPCI success story can be useful for policy makers in financial inclusion and other markets. Some factors illustrated in the NPCI story include:

  • An industry-led approach to ownership and governance, with strong regulator backing.
  • Competitive economics through a utility model, mixed with smart growth and a start-up culture.
  • A strategy of incremental, open-source product development.
  • A government/regulator that uses carrots and not only sticks.
  • A government/regulator that balances caution with progress.