The National Payments Corporation of India (NPCI) on Thursday announced that all banks in the country have started accepting online bank transfers.
The move comes as the country faces the most severe cash crunch in its history, with banks reporting losses of more than Rs. 2,500 crore.
As of March 31, banks in India reported loss of Rs. 5,935 crore due to the shortage of cash, said NPCI, which aims to be the country’s “first digital bank”.NPCA said the move was in line with the government’s efforts to ease the burden on the banking sector by providing digital banking services through mobile wallets.
The NPA said it had also decided to launch a new payment gateway to provide online banking services to all citizens by April next year.NPCIs move follows the announcement of a $3 billion investment by the government to provide digital payments for the people of the country.