National Payments Corporation of India (NPCI)
- It is an umbrella organisation for operating retail payments and settlement systems in India.
- It is an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, to create a robust Payment & Settlement Infrastructure in India.
- It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013).
- NPCI is promoted by ten major banks, including the State Bank of India, Punjab National Bank, Citibank, Bank of Baroda, and HSBC.
- The NPCI can operate payment systems such as the National Financial Switch (NFS), Immediate Payment System (IMPS), Aadhaar-enabled Payments System (AEPS), and National Automated Clearing House (NACH).
Services Offered by NPCI
- Bharat Bill Payment Interface (BBPI): It was developed to help the retail payments sector. With its introduction, a single platform has been created for aggregators and billpayers.
- Immediate Payment Service (IMPS): This facility allows you to transfer funds immediately and is available at any time.
- RuPay: NPCI introduced RuPay so that average citizens can make financial decisions.
- RuPay is an affordable card and can be issued as credit cards, debit cards, and prepaid cards. More than 300 million RuPay cards are in India.
- USSD Services: Unstructured Supplementary Service Date (USSD) was introduced by the NPCI to allow individuals to make banking solutions without the need for the internet or smartphones.
- BHIM: BHIM uses UPI to complete payment transfers. You can make payments via BHIM by entering the Virtual Payment Address (VPA) or the registered mobile number. No smartphone is required to transfer funds via BHIM.
- UPI: United Payments Interface (UPI) allows you to transfer funds from your smartphone.
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