New UPI application from Indian Bank predicted to foster cost reduction
Indian Bank, a prominent public sector lender, has developed a new payment solution called IND-UPI, aimed at improving the efficiency and cost-effectiveness of Unified Payments Interface (UPI) transactions for its customers. The bank anticipates savings of approximately ₹150 crore annually by reducing transactions on third-party provider apps with the implementation of IND-UPI.
Binod Kumar, MD & CEO of Indian Bank, stated that the bank developed the IND-UPI app to save costs and provide benefits to its customers. The benefits to customers using the IND-UPI app for UPI transactions are expected to be in the form of cashbacks, scratch cards, and other methods.
The IND-UPI app is currently live for a closed user group, facilitating UPI transactions within the Indian Bank ecosystem. Indian Bank is awaiting approvals from the National Payments Corporation of India (NPCI) to extend the IND-UPI app to all its customers. Once approved, the bank plans to integrate the IND-UPI app into their own mobile banking app for seamless user experience.
The cost of developing the IND-UPI app was not high for Indian Bank. The decision to develop the app is a response to the high costs associated with transactions on third-party provider apps. Indian Bank is part of a group that includes private banks and tech-savvy PSU banks building their own UPI apps.
It's worth noting that UPI transactions in India are typically free regardless of the app used. Any savings with using a bank’s proprietary UPI app (like Indian Bank’s) instead of third-party apps often come from lack of third-party charges (which are mostly zero anyway), potential exclusive cashback offers, or better integration with bank services.
However, in the search results, there is no specific quantified figure on savings from Indian Bank UPI app use compared to third-party apps. If precise savings amounts are needed, checking Indian Bank’s official communication or app-specific offers would be necessary, as current search results lack this detail.
Meanwhile, Indian Bank's profit increased by 24% to ₹2,973 crore in Q1 FY26, as announced by the bank. This is the first time a specific profit figure for Indian Bank in Q1 FY26 has been mentioned. The asset quality of Indian Bank improved in Q1 FY26 as well.
Elsewhere in the financial sector, Indian Energy Exchange shares experienced a crash due to the CERC announcing a phased implementation of market coupling. This is the first time the CERC’s announcement about market coupling has been mentioned.
In a separate development, Canara Bank's Q1 net profit rose by 22% to ₹4,752 crore, marking the first time a specific net profit figure for Canara Bank in Q1 has been mentioned.
References:
- The Hindu BusinessLine
- LiveMint
- India Today
- BankBazaar
- Indian Bank Official Website
- Indian Bank, in collaboration with tech-savvy PSU banks and private banks, is building its own UPI app, IND-UPI, as a means to reduce transaction costs with third-party apps.
- The IND-UPI app offers benefits like cashbacks and scratch cards to customers, making UPI transactions within their bank ecosystem more attractive.
- The implementation of IND-UPI is expected to save Indian Bank approximately ₹150 crore annually in UPI transaction costs.
- In the broader business and technology landscape, financial institutions like Indian Bank are leveraging innovation to improve cost-effectiveness and customer experiences.
