NPCI (National Payments Corporation of India) is an organization for operating retail payments and settlement systems in India, is an initiative of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a strong Payment & Settlement Infrastructure in India.
According to the history of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.
And having the ten core promoter banks are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N. A., and HSBC. In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors.
Contents of this post
What is NPCI?
NPCI is an initiative of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) and is an umbrella organization for operating retail payments and settlement systems in India. NPCI has ten core promoter banks—State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, HDFC Bank, Citibank, HSBC, and ICICI Bank.
What is the full form of NPCI?
NPCI stands for National Payments Corporation of India. NPCI, during its journey, has made a significant impact on the retail payment systems in the country. Dedicated to the nation by our former President, Shri Pranab Mukherjee, endorsed by the Hon’ble Prime Minister, Shri Narendra Modi, and later made the card of choice for the ambitious Pradhan Mantri Jan Dhan Yojana, RuPay is now a known name.
What is the work of NPCI?
NPCI provides services such as online transaction routing, processing, and settlement to members participating in UPI. NPCI can, either directly or through a third party, conduct audits on UPI participants and calls for data, information, and records, in relation to their participation in UPI.
What are the achievements of NPCI?
NPCI, during its journey, has made a significant impact on the retail payment systems in the country. Dedicated to the nation by our former President, Shri Pranab Mukherjee, endorsed by the Hon’ble Prime Minister, Shri Narendra Modi, and later made the card of choice for the ambitious Pradhan Mantri Jan Dhan Yojana, RuPay is now a known name out of the given list.
- NETC Fastag
- BHIM Aadhaar
- Bharat Billpay
UPI (Unified Payments Interface)
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.
RuPay is the first-of-its-kind domestic Card payment network of India, with wide acceptance at ATMs, POS devices, and e-commerce websites across India. It is a highly secure network that protects against anti-phishing. The name, derived from the words ‘Rupee and ‘Payment’, emphasizes that it is India’s very own initiative for Card payments. It is NPCI’s answer to international payment networks, expressing pride over our nationality.
RuPay fulfills RBI’s vision of initiating a ‘less-cash economy. This could be achieved only by encouraging every Indian bank and financial institution to become tech-savvy and engage in offering electronic payments.
Bharat Interface for Money (BHIM) is an app that lets you make simple, easy, and quick payment transactions using Unified Payments Interface (UPI). You can make instant bank-to-bank payments and Pay and collect money using just a Mobile number or Virtual Payment Address (UPI ID).
National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates, and Government a web-based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. NACH System can be used for making bulk transactions towards the distribution of subsidies, dividends, interest, salary, pension, etc., and also for bulk transactions towards the collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium, etc.
IMPS provides robust & real-time fund transfer which offers an instant, 24X7, interbank electronic fund transfer service that could be accessed on multiple channels like Mobile, Internet, ATM, SMS. And IMPS is an emphatic service that allows transferring of funds instantly within banks across India which is not only safe but also economical. Currently, on IMPS, 639 members are live which includes banks & PPIs.
National Payments Corporation of India (NPCI) has developed the National Electronic Toll Collection (NETC) program to meet the electronic tolling requirements of the Indian market. It offers an interoperable nationwide toll payment solution including clearinghouse services for settlement and dispute management. Interoperability, as it applies to National Electronic Toll Collection (NETC) system, encompasses a common set of processes, business rules, and technical specifications which enable a customer to use their FASTag as a payment mode on any of the toll plazas irrespective of who has acquired the toll plaza.
*99#, a USSD based mobile banking service of NPCI was initially launched in November 2012. The service had limited reach and only two TSPs were offering this service i.e. MTNL & BSNL. Understanding the importance of mobile banking in financial inclusion in general and of *99# in particular, various regulatory/trade bodies came together to ensure the onboarding of all TSPs on *99# (USSD 1.0). With the wider ecosystem (11 TSPs), *99# was dedicated to the nation by Hon’ble Prime minister on 28th August 2014, as part of Pradhan Mantri Jan Dhan Yojna.
Cheque Truncation is the process of stopping the physical movement of cheques. As per the amended Negotiable Instruments Act 1881, in cheque truncation, the movement of the physical instrument is stopped and replaced by electronic images and associated MICR line of the cheque.
National Financial Switch (NFS) ATM network having 37 members and connecting about 50,000 ATMs was taken over by NPCI from Institute for Development and Research in Banking Technology (IDRBT) on December 14, 2009. Over the span of a few years, the NFS ATM network has grown many folds and is now the leading multilateral ATM network in the country. As of 31st October’ 21, there were 1,199 members that including 110 Direct, 1,042 Sub members, 43 RRBs, and 4 WLAOs using NFS network connected to more than 2.53 Lac ATM (including cash deposit machines/recyclers)
NFS has established a strong and sustainable operational model with in-house capabilities and today can be compared at par with other major and well-established switch networks. The operational functions and services are at par with most of the global ATM networks.
Aadhaar Enabled Payment System is a payment service empowering a bank customer to use Aadhaar as his/her identity to access his/ her respective Aadhaar enabled bank account and perform basic banking transactions like balance inquiry, cash deposit, cash withdrawal, remittances through a Business Correspondent.
BHIM Aadhaar Pay enables Merchants to receive digital payments from customers over the counter through Aadhaar Authentication. It allows for any Merchant associated with any acquiring bank live on BHIM Aadhaar Pay, to accept payment from customers of any bank by authenticating customers’ biometrics.
e-RUPI is a one-time use digital solution to facilitate cashless payment which is a person & purpose-specific solution for various services like COVID Vaccine, donations, corporate gift vouchers, etc.
NPCI has launched the functionality of AutoPay for recurring payments. With this new facility introduced customers can now enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds among others.
Now you can use your UPI ID as a payment option while subscribing for IPO on National Stock Exchange(NSE) & Bombay Stock Exchange(BSE). Simply tell your broker to use UPI ID as the payment option while filling the IPO application.
The Bharat Bill payment system is a Reserve Bank of India (RBI) conceptualized system driven by the National Payments Corporation of India (NPCI). It is a one-stop ecosystem for payment of all bills providing an interoperable and accessible “Anytime Anywhere” bill payment service to all customers across India with certainty, reliability, and safety of transactions.
Is NPCI a government company?
The National Payments Corporation of India (NPCI) is the specialized division of the Reserve Bank of India which is under the jurisdiction of the Ministry of Finance, Government of India. It was created by RBI for operating retail payments and settlement systems in India.
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