The US Federal Reserve, or the Fed, should replicate India’s Unified Payments Interface (UPI) model for its proposed interbank real-time gross settlement (RTGS) service, Google has recommended.
Launched in 2016, the UPI is the country’s flagship real-time payments system, which allows users to transfer money directly from their bank accounts. Since it works across multiple bank accounts, without revealing the details of one’s account to the other party, it makes paying someone as simple as handing over cash. It clocked 1.2 billion transactions in November, valued at Rs 1.89 trillion. Citing the UPI’s phenomenal success in India, Google, in a letter to the Fed, said FedNow should be an open system, like the UPI.