[haltingproblem]

India UPI was proposed and implemented by the Central Bank and provides a fantastic example of a low-to-zero cost option of intra-bank money transfer which is bank and vendor neutral. Google recently recommended the model to the Fed[1].

However, what NYS is proposing is distinct from an open payment system. This is a closed parallel system of exchange which serves as both a bank account and a payment system. I don't get how this will be better than providing low-cost bank accounts to the unbanked and then providing an easy payment system on top.

Or perhaps requiring banks in NYS to provide free accounts to those whose income is below a certain threshold. Certainly another way to bell the cat rather than creating an alt-currency and a ledger.

[1] https://www.bloombergquint.com/business/can-indias-upi-becom...

(edits: grammar)

[captn3m0]

Correction: It is run by NPCI (National Payment Corporation of India) which is a multi-bank private non-profit body that is authorised by the central bank (RBI) to run a payments system.

Additionally, the central bank already runs a vendor neutral bank account transfer infrastructure called NEFT which recently became 24x7. UPI just happened to be mobile first and we had enough underlying infra to support such a thing.