National Messaging Gateway

With Government of India’s initiative for direct cash transfer instead of subsidies will boost the Financial Inclusion (FI) drive of RBI to provide no-frill bank accounts to all unbanked hoi polloi. This will drive the Third Party Service Providers (TSP) to increase the coverage and to be ready to handle larger volume of transactions.

Nationalized banks are getting ready with FI messaging gateways with built-in algorithm to support proprietary messages from TSPs, to provide secured routing, to connect real-time Core Banking Software (CBS), to enable audit control & reconciliation of information exchange.  The messaging gateways will enable inter-bank transactions, apart from Aadhaar Enabled Payment (AEPS) and Aadhaar Payment Bridge (APBS) through connectivity with National Payment Corporation of India (NPCI) network.

Next logical step for Government is to give a hard look at National Messaging Gateway (NMG) for FI where all Banks’ messaging gateways may converge. This may replace NPCI. Alternatively, NMG can cater to low value high volume transactions both rural and urban sector whereas NPCI may attend to high value financial transactions.

National Messaging Gateway will be true catalyst for achieving Government’s vision on FI solution nationwide.