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NPCI mulls using blockchain solution to strengthen digital payments

Press Trust of India  |  New Delhi 

is considering using highly scalable solution to further strengthen digital payments, which have seen an exponential growth in recent times.

A or distributed ledger is a continuously growing list of encrypted transactions called blocks. A block may contain any type of data such as unique digital identifiers of

The (NPCI) is an umbrella organisation for all in It was set up with the guidance and support of the and the Indian Banks (IBA).

Promoted by 10 banks in India under the aegis of the IBA, it aims to become the "best globally". Presently, 56 banks are shareholders of

"intends to develop a resilient, and highly scalable solution. It is proposed to develop this solution using an open source technology/ framework/solution," it said in a notification.

In this regard, the NPCI has floated an Express of Interest (EOI) in order to enable bidders to propose their capability for developing distributed ledger technology/ blockchain in the payment domain.

As per a recent report of global consultancy firm PwC, India would be one of the world's blockchain leaders by 2023.

"Blockchain stores information about transactions between users in a way that can be tracked by any user for forever for maximum transparency. This gives visibility which can lead to greater efficiency by automating or confirming transactions and increasing liquidity in the supply chain," said

NPCI has invited bids for selection of (LC) to acquire various End-to-End Statutory permissions for Construction of (CDC) in and

NPCI provides services like cheque clearance and facilitates digital payments.

It has developed Payments Interface (UPI), an instant payment system.

UPI is fast gaining traction in the country with total payments through it soaring to Rs 1.33 lakh crore in March 2019 from a meagre Rs 3.1 crore in August 2016.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, April 14 2019. 11:35 IST