NPCI (Syllabus: GS Paper 3 – Economy)

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Context: Recently, Google India Digital Services and NPCI International Payments Limited (NIPL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), announced that they have signed a Memorandum of Understanding (MoU) to expand the transformative impact of UPI to countries beyond India.

National Payments Corporation of India (NPCI)

  • About: It is an umbrella organization for operating retail payments and settlement systems in India.
  • Established:  As an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), the NPCI operates under the provisions of the Payment and Settlement Systems Act, 2007, to create a robust Payment & Settlement Infrastructure in India.
  • Not-for-Profit Company: Incorporated as a “Not for Profit” Company under Section 25 of the Companies Act 1956, the NPCI focuses on bringing innovations in retail payment systems through technology for greater operational efficiency and wider payment reach.
  • Innovation in Retail Payment Systems: The company is dedicated to bringing innovation to retail payment systems by leveraging technology to enhance operational efficiency and expand the reach of payments.
  • Promoted by Major Banks: NPCI is promoted by ten major banks, including the State Bank of India, Punjab National Bank, Citibank, Bank of Baroda, and HSBC.
  • Regulatory Board Composition: The regulatory board of the NPCI, headquartered in Mumbai, includes nominees from the RBI and ten core promoter banks.
  • Payment Systems: NPCI operates various payment systems, including National Financial Switch (NFS), Immediate Payment System (IMPS), Aadhaar-enabled Payments System (AEPS), and National Automated Clearing House (NACH).


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