National Payments Corporation of India (NPCI)

The National Payments Corporation of India (NPCI) is an umbrella organization 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, for creating a robust Payment & Settlement Infrastructure in India. NPCI was incorporated in December 2008 and is promoted by 10 banks in India. The organization is registered under section 8 of the Companies Act 2013 (erstwhile section 25 of the Companies Act 1956) and has been granted the status of ‘Public Limited Company’ under the Companies Act 2013.

Objectives

The main objectives of NPCI are as follows:

• To operate for the benefit of all the member banks and their customers.
• To create infrastructure for operating the retail payment systems in the country.
• To provide an affordable payment mechanism to benefit the common man across the country and help financial inclusion.
• To emerge as the best payments network globally.

Products and Services

NPCI has developed several innovative products and services to cater to the needs of the Indian banking industry and the common man. Some of the key products and services offered by NPCI are:

• RuPay: RuPay is a domestic card payment network launched by NPCI in 2012. It is an alternative to international card payment networks like Visa and Mastercard and provides a secure, reliable, and cost-effective payment solution for Indian consumers.
• Unified Payments Interface (UPI): UPI is a real-time payment system developed by NPCI that enables instant fund transfer between two bank accounts on a mobile platform. It is a secure and convenient way of making payments using a virtual payment address or a QR code.
• Immediate Payment Service (IMPS): IMPS is an instant interbank electronic fund transfer service that allows customers to transfer funds instantly from one bank account to another, 24×7, using mobile banking, internet banking, or ATMs.
• Aadhaar Enabled Payment System (AePS): AePS is a bank-led model that allows online interoperable financial inclusion transactions at PoS (Point of Sale / Micro ATM) through the Business Correspondent (BC) of any bank using Aadhaar authentication.
• National Electronic Toll Collection (NETC): NETC is a system developed by NPCI for electronic toll collection at toll plazas across the country. It uses RFID technology to enable cashless and contactless toll payments, thereby reducing congestion and waiting time at toll plazas.
• Bharat Bill Payment System (BBPS): BBPS is an interoperable platform developed by NPCI for facilitating online bill payments for electricity, water, gas, telephone, and other utility services. It provides a convenient and secure way of paying bills from anywhere, anytime, using various payment modes.

Governance Structure

NPCI is governed by a Board of Directors, which comprises representatives from member banks and nominees from the Reserve Bank of India. The Board is responsible for the overall management and direction of the company and is assisted by various committees such as the Audit Committee, the Nomination and Remuneration Committee, and the Risk Management Committee.

The Managing Director and CEO of NPCI is appointed by the Board and is responsible for the day-to-day management of the company. The current MD & CEO of NPCI is Mr. Dilip Asbe, who took charge in January 2018.

Impact and Achievements

NPCI has played a significant role in transforming the Indian payment landscape and promoting digital payments in the country. Some of the key achievements of NPCI are:

• Facilitating over 2 billion transactions per month across all its products and services.
• Enabling over 200 million RuPay cards and over 2 billion UPI transactions.
• Developing a robust and secure payment infrastructure that is accessible to all segments of the population, including the unbanked and underbanked.
• Promoting financial inclusion by providing affordable and convenient payment solutions to the common man.
• Collaborating with various stakeholders, including banks, fintech companies, and government agencies, to create a vibrant and innovative payment ecosystem in India.

The National Payments Corporation of India has played a pivotal role in transforming the Indian payment landscape and promoting digital payments in the country. Through its innovative products and services, NPCI has enabled millions of Indians to access affordable and convenient payment solutions, thereby promoting financial inclusion and economic growth.