Context:
At least four major banks HDFC Bank, Axis Bank, SBI, and AU Small Finance Bank along with several online payment aggregators are preparing to go live on Netbanking 2.0, a new interoperable netbanking switch developed by NPCI Bharat BillPay Ltd. (NBBL). The official launch is expected by RBI Governor Sanjay Malhotra at the Global Fintech Fest 2025 (Oct 7–9).
Netbanking 2.0 Features:
- Aims to standardise and simplify netbanking transactions.
- Functions as a new independent switch, not reliant on existing payment rails.
- Enables interoperability across banks — merchants and aggregators won’t need separate bank tie-ups.
- Expected to resolve issues of settlement delays, chargebacks, reconciliations, and lack of visibility in the current system.
- Objective: Standardize netbanking services and improve customer experience across banks.
- Distinctiveness: Unlike existing systems, it removes the need for individual payment aggregators to integrate separately with each bank.
Benefits:
- Enhanced Interoperability: Simplifies settlements, reconciliations, and chargeback processes across banks.
- Dynamic QR Codes: Supports multi-device transactions, allowing initiation on laptops/desktops and authorization via mobile devices.
- Streamlined User Experience: Standardized processes reduce friction for end-users and financial service providers.
