Governor Das Points Out Bank System Flaws in Online Payments

Governor Shaktikanta Das highlighted that the issues in executing online payments are due to flaws in banks' systems rather than the UPI or NPCI. He emphasized the importance of banks investing in technology and maintaining disaster recovery sites. A slew of efforts, including promoting UPI Lite, are being encouraged to reduce pressures on bank servers.

Governor Shaktikanta Das on Friday revealed that the Reserve Bank of India (RBI) has identified banks' system flaws as the root cause of difficulties in executing online payment transactions, rather than problems with the Unified Payments Interface (UPI) or the National Payments Corporation of India (NPCI).

Das affirmed that each instance of an outage is scrutinized by RBI officials to determine its cause, with no issues found on the NPCI or UPI platforms. He added that RBI teams consistently check with NPCI during investigations. 'There is no problem at the end of NPCI or UPI. The problem comes from the bank's end,' Das noted.

He also emphasized that banks must invest appropriately in technology to keep pace with overall business growth, and the RBI will not dictate specific technology spending. Meanwhile, Deputy Governor T Rabi Sankar discussed ongoing initiatives such as promoting UPI Lite to alleviate pressure on bank servers, which currently process 10 million transactions per month.

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