UPI Tap & Pay Works With NFC Phones, Demat 2.0 to Enable Tokenised Corporate Bond Transactions

NPCI is the chief body which handles retail payment and settlement systems in India. It was established by RBI and Indian Bankers Association (IBA). This service has been launched by UPI prior to launching of this service by Apple Pay in India. Tap & Pay is available in Apple Pay as well.

Moreover, services such as PhonePe and Google Pay also provide the same functionality through their respective apps. However, UPI has now made it standard.

This means that whether you use any UPI app, such as PhonePe, Google Pay, BHIM, or Paytm, you'll get tap-and-pay. You don't need to open the UPI app to use this feature. You simply unlock your phone, take it to the POS machine, and the amount entered will be transferred.

SEBI announced the launch of Demat 2.0 on Thursday. This is a pilot project for tokenization of corporate bonds, allowing instant transactions.

Demat 2.0 is linked to the RBI's wholesale digital currency, CBDC, through the RBI's Unified Market Interface (UMI). This announcement was made jointly by RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kant Pandey at the Global Fintech Fest.

Corporate bond tokenization is a process in which ownership rights of traditional paper or digital ledger-based corporate bonds are converted into digital tokens on the blockchain (blockchain technology).

This is not a new investment product, but a modern and technologically advanced way to issue, sell, and manage existing bonds.