India's UPI Operator NPCI Sets Up Tech Subsidiary for AI and Blockchain

The new company, NPCI Tech Solutions Limited (NTSL), was set up after approval from NPCI's board and the Reserve Bank of India, the organisation said when it announced the unit on November 4. NTSL will act as the group's technology and innovation arm, covering AI, blockchain, digital financial infrastructure and Global Capability Centre services.

The move takes one of the most widely studied pieces of digital public infrastructure into wider technology work. NPCI, established by the RBI and the Indian Banks' Association, operates UPI, RuPay, IMPS, the National Automated Clearing House, the Aadhaar Enabled Payment System and the National Electronic Toll Collection system. NTSL is expected to provide technology services for public platforms including eKYC Setu and the Unified Ticketing Platform.

Vishal Kanvaty, previously NPCI's chief technology officer, has been appointed managing director and chief executive of NTSL. He has been at NPCI for nearly a decade and helped develop and commercialise several platforms that the organisation says now fall within the new unit's focus.

"Technology has been at the core of NPCI's journey and its contribution to India's digital transformation," said Dilip Asbe, NPCI's managing director and chief executive, according to Business Today. "As we look ahead, advancements in Artificial Intelligence and other emerging technologies are creating new possibilities," he said.

NTSL is NPCI's fourth wholly owned subsidiary. The others are NPCI International Payments Limited, which handles UPI's expansion abroad including links with Gulf markets, NPCI Bharat BillPay Limited and NPCI BHIM Services Limited.

NPCI has not disclosed how much it will invest in NTSL, its revenue targets, its customers or when it expects to launch new services.