According to Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar, the central bank was thinking about how to deal with problems caused by the duopoly of Google Pay and PhonePe in the Unified Payments Interface (UPI) market, which is owned by Alphabet and operated by Walmart, respectively.
“When it comes to UPI, roughly 80% of transactions are concentrated in just two entities… The United States is currently addressing the issue of big tech dominance. We are also looking at Europe to see how we can more effectively incorporate them (norms to address issues) into the payments system in complete synergy with regulatory objectives,” Sankar said.
He said this outside the India Ideas Summit hosted by the US-India Business Council (USIBC).
In order to support local startups and enterprises, Sankar added that the central bank was dedicated to supporting innovation in the fintech industry.