India's digital payments ecosystem is preparing for its next phase of technological development. The National Payments Corporation of India (NPCI), which operates key retail payment systems including UPI, has established a new wholly owned subsidiary called NPCI Tech Solutions Limited (NTSL).

The new company will act as NPCI's technology and innovation arm, focusing on emerging technologies such as artificial intelligence, blockchain and digital financial infrastructure. The move is aimed at strengthening the technology supporting India's payment ecosystem while creating opportunities for innovation in financial services.

What Will NPCI Tech Solutions Limited Do?

NTSL will develop capabilities in four major technology areas:

• Artificial Intelligence: Exploring AI-based solutions for financial services, automation and digital infrastructure.

• Blockchain: Building expertise in distributed ledger technology and its potential applications.

• Digital financial infrastructure: Developing technology systems that support India's growing digital economy.

• Global Capability Centre services: Expanding technology and innovation services for businesses and institutions.

The subsidiary will also provide technology services for initiatives such as eKYC Setu, the Unified Ticketing Platform (UTP) and other Digital Public Infrastructure programmes.

Vishal Kanvaty Appointed as CEO of the New Company

NPCI has appointed its Chief Technology Officer, Vishal Kanvaty, as the Managing Director and Chief Executive Officer of NPCI Tech Solutions Limited.

Kanvaty has been associated with NPCI for nearly a decade. He joined the organisation in 2017 and has worked across product development and innovation. Before taking charge as CTO in April 2023, he led the development and commercialisation of several technology platforms.

His experience in building digital payment and technology solutions is expected to play an important role in the new subsidiary's expansion.

NPCI Is Expanding Beyond Its Core UPI Business

NPCI is the organisation responsible for operating several important retail payment and settlement systems in India. These include:

• Unified Payments Interface (UPI)

• RuPay

• Immediate Payment Service (IMPS)

• Aadhaar Enabled Payment System (AePS)

• National Automated Clearing House (NACH)

• National Electronic Toll Collection (NETC), used for FASTag payments

• Bharat BillPay

NTSL will become NPCI's fourth wholly owned subsidiary, joining NPCI International Payments, NPCI Bharat BillPay and NPCI BHIM Services. Its purpose is to build technology capabilities beyond the organisation's traditional payment operations.

Could This Change the Future of Digital Payments in India?

The creation of NTSL does not mean that a new UPI application or blockchain-based payment service is launching immediately. Instead, it represents NPCI's broader plan to invest in emerging technologies and strengthen the digital infrastructure supporting India's financial ecosystem.

In the future, developments in AI could help improve automation, data analysis and financial services, while blockchain technology may offer new ways to manage and verify digital records.

The subsidiary could also contribute to the development of technology used in government platforms and other digital public infrastructure projects.

With digital payments becoming an essential part of everyday life, NPCI's new technology arm could play an important role in shaping India's next generation of financial technology.