1: Introduction and Background

  • NPCI International Payments Ltd. (NIPL), a fully owned subsidiary of the National Payments Corporation of India (NPCI), has recently signed an agreement with the Bank of Namibia. The agreement is based on the establishment of a real-time instant payment system that mirrors India's Unified Payment Interface (UPI).
  • NIPL was established on April 3, 2020, with the primary objective to internationalise the RuPay card scheme and UPI mobile payment solution. The company is dedicated to bringing revolutionary changes in global payments by optimising innovation and technology.

2: The Initiative and its Impacts

  • This new instant payment system to be developed in  Namibia  will  hasten Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions.
  • The system is expected to increase financial inclusion, particularly among the underserved populations of Namibia.
  • This strategic partnership will enhance the payment systems worldwide, especially in resource-limited countries, by leveraging NIPL's vast experience and advanced payment

3: A Quick Hermeneutic of Namibia

  • Namibia, the partner country of this agreement, is the second least densely populated country in the world. It is situated along the Southern African
  • The country shares its borders with South Africa, Botswana, Zimbabwe, Zambia, and
  • Its topographically diverse environment comprises deserts, marshlands, savannahs, mountains, and river valleys.

4: About National Payments Corporation of India (NPCI)

  • NPCI is a 'Not for Profit' Company that operates under the provisions of the Payment and Settlement Systems Act, 2007. It comes under Section 8 of Companies Act 2013, earlier Section 25 of Companies Act 1956.
  • This umbrella organisation manages retail payments and settlement systems in India.
  • Initiated by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), NPCI aims to provide an infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.
  • The partnership with the Bank of Namibia further underlines its objective and commitment to enhancing global payment systems.