NPCI Spins Off BHIM into a Separate Arm; Lalitha Nataraj Appointed CEO

The National Payments Corporation of India (NPCI) is spinning off its Bharat Interface for Money (BHIM) app into a standalone subsidiary to bolster its presence in the digital payments market. Lalitha Nataraj, previously with IDFC FIRST Bank and ICICI Bank, has been appointed as CEO of this new entity.

Strategic Move

The separation of BHIM into an independent subsidiary aims to address concentration risks in India’s Unified Payments Interface (UPI) sector. Currently, PhonePe and Google Pay dominate the market, processing around 85% of UPI transactions. BHIM, by contrast, handles only 0.16% of total UPI transactions, highlighting the need for diversification.

Leadership Appointment

Lalitha Nataraj, who brings extensive experience from IDFC FIRST Bank and ICICI Bank, will lead the newly formed BHIM subsidiary. Her appointment is part of NPCI’s strategy to enhance BHIM’s market reach and operational focus.

Operational Changes

The new BHIM subsidiary will operate with its own balance sheets and financial structures, distinct from NPCI. This separation will allow for a more targeted approach to growing the BHIM application while maintaining its connection to NPCI’s overarching framework.

Previous NPCI Spin-Offs

NPCI’s decision to spin off BHIM follows a similar move in 2021 with NPCI Bharat BillPay Limited, created to manage the Bharat Bill Payment System.

Piyush Shukla

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