India’s real-time payment system, UPI, appears to have defied the odds in becoming the digital payments channel of choice for a country of more than 1.4 billion. As other countries look to replicate this success, there is more to it than simply adopting the technology.
The country is an outlier internationally, with a large proportion of AT1s held by domestic retail investors. Regulator Apra believes this would make it particularly challenging to use AT1s during the recapitalisation of a bank in resolution.