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You are wrong on one very important point: NPCI is a non-government entity. It is a not for profit corporation that acts as a conglomeration of banks. The gover
by captn3m0 6y ago
You are wrong on one very important point: NPCI is a non-government entity. It is a not for profit corporation that acts as a conglomeration of banks. The government gets a day in it by 1. owning public sector banks and 2. By regulating it indirectly as RBI (which is itself quite autonomous).
It is more akin to a not for profit VISA than the Fed Reserve.
- themacguffinman 6y ago> NPCI is a non-government entity Fair correction. However, correct me if I'm wrong, it still plays the role of a singular national authority blessed by the central bank. I'm skeptical that its non-government status is an important distinction when it appears to be an exclusively Indian institution co-established by the RBI. I don't think Visa's status is quite the same: Visa has actual competitors and operates under many foreign jurisdictions. I'd say the NPCI is as trustworthy and protected as the government institutions that bless it.
- captn3m0 6y agoYeah, the VISA comparison isn’t apt either. Maybe if VISA had a higher market share. The RBI initiated process to setup a parallel body to NPCI, but that will take eons in fintech time. The non-government status is important because the NPCI fought a case (and won) to keep it out of the ambit of the Right yo Information act. It is an opaque institution with a government granted monopoly that is also simultaneously a cartel of sorts.