NPCI is a public sector company with partial ownership between 46 banks. Its costs is trivial compared to savings and efficiency it brings in overall system. Cash handling is very costly for entire chain. Printing by RBI, its logistics by banks and handling by vendors.
Apart from that it is formalization of informal economy, govt has better visibility, tax evasion is difficult and people outside financial services can now use it.
Also, like Rupay has charging for transactions abover a certain threshold of value like 10000 will cover some of the costs without reducing the incentive of system.
Think of vaccines, small cost for big savings elsewhere.
Apart from that it is formalization of informal economy, govt has better visibility, tax evasion is difficult and people outside financial services can now use it.
Also, like Rupay has charging for transactions abover a certain threshold of value like 10000 will cover some of the costs without reducing the incentive of system.
Think of vaccines, small cost for big savings elsewhere.