Nandan Nilekani: UPI, AA and ONDC will rearrange the Indian supply chain: Nandan Nilekani

Infosys Chairman Nandan Nilekani said that the Unified Payments Interface (UPI), the Account Aggregator Framework (AA) and the Open Network for Digital Trade (ONDC) will combine to revolutionize the Indian supply chain ecosystem.

Nilekani was speaking at the launch event of new UPI solutions by the National Payments Corporation of India (NPCI) during the Global Fintech Fest.

He said that the lending and payments system will benefit from the new solutions being introduced that will help a larger percentage of the population join the ecosystem of digital transactions.

This combination of credit enabled by UPI, AA and ONDC will fundamentally rearrange the supply chain to make it more efficient, and make it easier to provide products and services to all, he said.

Nilekani added that ONDC will have a significant impact on e-commerce by allowing retailers, suppliers and logistics companies to interact with each other, which in turn will affect local commerce and bulk trade.

NPCI has launched solutions such as RuPay credit card on UPI, UPI LITE and Bharat BillPay cross-border bill payments.

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This would expand the spread of the digital stack across the country, Nilekani said.

“Today, we have about 260 million people using UPI. With the launch of UPI offline, I think we can add another 500 million people to the payment system.”

This will also expand the base of 150 million individual users who use the Aadhaar Payment System (AEPS), he said.

“We have an existing credit product like Rupay, and by making it available on UPI, it will open up more forms of credit on UPI, so there will be new native capabilities on UPI, like BNPL (Buy Now, Pay Later), and so forth.”

Nilekani said that giving 400 million individual UPI users access to local credit products like BNPL would democratize consumer use of credit in a healthy way using data.

NPCI’s technology infrastructure is among the most advanced anywhere in the world and is built entirely on an open source stack at extremely low cost using commodity hardware, and is built to size.

“And that infrastructure is now being re-implemented for other applications. They have IMPS (Instant Payment Service) and BBPS (Bharat Bill Payment Service). So, the underlying infrastructure is now standardized by NPCI, which is an exceptional technical achievement.”

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