The National Payments Corporation of India (NPCI) has recently declared a collaboration with the Bank of Namibia (BoN). The purpose of this partnership is to assist the Bank of Namibia in establishing its own payment system.
The NPCI, an initiative by the Reserve Bank of India and Indian Banks’ Association, is a not-for-profit company. It has developed numerous programs for financial payments and activities, as per the information on the company’s about page.
Ritesh Shukla, CEO of NPCI International, expressed his views on this partnership in a news release. He said, "We are proud to join hands with Bank of Namibia to enable the deployment of UPI-like real-time payments system in Namibia for the Digital Public Good of its citizens. We are excited about this partnership, which will enable Namibian citizens to transact instantly leveraging technology and experiences from India's UPI. By enabling this technology, the country will gain sovereignty in the digital payments landscape and stand to benefit from enhanced payment interoperability and improved financial access for underserved populations. This will also ensure scalability and adaptability to embrace future technological advancements and market demands, thereby propelling economic prosperity in the region."
The Bank of Namibia serves as the central bank for the Republic of Namibia. Established in 1990, it is tasked with ensuring that the national payment system functions appropriately; formulating and implementing monetary policy; issuing bank notes and coins among other duties. It also acts as the banker for the republic’s government, administers exchange controls in the country, promotes financial stability and manages reserves for foreign exchange.
Johannes Gawaxab, honorable governor of the Bank of Namibia, outlined their objectives in relation to this collaboration in a news release. He said, "Our objective is to enhance accessibility and affordability for underserved populations, achieve full interoperability of payment instruments by 2025, modernize the financial sector, and ensure a secure and efficient National Payment System. This endeavour, aligned with the Bank's Strategic Plan and NPS Vision and Strategy 2025, deliberately employs a central bank-led approach to minimize infrastructure costs for financial institutions, thereby ensuring the sustainability and affordability of instant payment solutions for end users. This system aims to connect individuals, businesses, and government entities across Namibia, including the payment of social grants, enabling more efficient economic interactions and supporting the growth of digital entrepreneurship."