NPCI Full Form, Roles and Responsibilities

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NPCI Full Form, Roles and Responsibilities

NPCI full form is National Payments Corporation of India. Contrary to popular belief, NPCI is a non-profit organization and not a government body. It is promoted by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA). Check out this blog post to learn about NPCI, its roles and responsibilities, etc. 

What is NPCI full form?

NPCI full form is National Payments Corporation of India. It is a non-for-profit company responsible for managing physical as well as electronic payment and settlement systems across India, such as the Unified Payments Interface (UPI), Immediate Payment Service (IMPS) and the National Financial Switch (NFS), which connects ATMs across India. In addition to this, the corporation manages services such as the RuPay debit and credit card network and the Bharat Bill Payment System (BBPS) for payment of bills. 

It was incorporated under Section 8 of the Companies Act 2013 as an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) under the Payment and Settlement Systems Act 2007, with the goal of building a strong and efficient payment infrastructure in the country.

NPCI received its Certificate of Commencement of Business in April 2009, following its incorporation in December 2008. The organization has an authorized capital of Rs. 3 billion (approximately US$35 million) and a paid-up capital of Rs. 1 billion (around US$12 million).

The ten core promoter banks of the NPCI ecosystem were State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC. They provided initial equity capital for NPCI’s establishment.

Roles and Responsibilities of NPCI

The functions of the National Payments Corporation of India (NPCI) can be understood with the help of the following points:

• One of NPCI's primary responsibilities is to establish a dependable and efficient payment and settlement infrastructure within India.

• The National Payments Corporation of India aims to promote financial inclusion. To make it happen, it works on increasing the accessibility of digital payment systems for all societal segments within the country.

• NPCI works to further the goal of a cashless economy via continuous innovation in digital payment technology.

• The NPCI seeks to increase operational effectiveness across numerous digital payment platforms and ensure smooth transaction processing for the parties involved.

• Also, NPCI is responsible for developing innovative payment systems that support secure and practical online transactions.

• By enabling inter-bank settlements for transactions handled by its various payment systems, the NPCI also guarantees seamless financial transfers between banks.

List of NPCI Payment Systems

Below, we have provided you with the list of some popular NPCI payment systems in India.:

• UPI: UPI full form is Unified Payment Interface. It is an instant payment system and protocol established by the National Payments Corporation of India (NPCI) in 2016. It enables users to link their bank accounts to a phone number, transfer funds smoothly, pay utility bills, gym fees, education fees and purchase groceries, clothes online, etc. It has become a preferred payment choice for many users in India.

• BHIM: BHIM full form is Bharat Interface for Money. It is an app developed in 2016 by NPCI to make UPI-based transactions simpler for the users. Due to its intuitive interface, the app users can send or receive money in an instant manner.

• RuPay: It is the domestic card payment network conceived and owned by the NPCI. It offers a variety of debit and credit cards. RuPay competes with international card networks like Visa and Mastercard, and is widely accepted across the country.

• AePS (Aadhaar Enabled Payment System): AePS is a payment service by NPCI. It makes use of Aadhaar for biometric verification and enables individuals to make financial transactions secure without the requirement of physical cards or PINs.

• NACH: NACH stands for National Automated Clearing House. It was introduced in 2013, and is a centralized electronic payment system developed by the NPCI that automates bulk repetitive financial transactions like loan EMI collections, disbursement of salary, etc., and makes them more reliable and secure.

Conclusion

NPCI full form is National Payments Corporation of India. It was established in 2008 by the Reserve Bank of India and Indian Banks’ Association. NPCI is a Section 8 Company under the Companies Act 2013, and its role is to manage the physical as well as electronic payment and settlement systems across India. 

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Frequently Asked Questions (FAQs)

Q1. What is NPCI full form?

A. NPCI full form is National Payments Corporation of India.

Q2. Who were the core promoter banks of NPCI?

A. The core promoter banks of NPCI were State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC. These banks were the initial shareholders/stakeholders when NPCI was established by RBI and IBA.

Q3. Who are the founders of NPCI?

A. Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) are the founders of NPCI.

Q4. Is NPCI a government body?

A. No, NPCI is not a government body. It is a non-profit, non-government organization.

Q5. What kind of company is NPCI?

A. NPCI is a Section 8 Company, established under the Companies Act 2013.

Q6. When was NPCI founded?

A. NPCI was founded in 2008 by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA).

Q7. What is RuPay?

A. It is a domestic card payment network conceived and owned by the NPCI. It issues debit cards and credit cards that are widely used across India. The Rupay network competes with international card networks like Visa and MasterCard.

Q8. When did NPCI introduce BHIM?

A. The NPCI developed and introduced Bharat Interface for Money, abbreviated as BHIM, in 2016. BHIM was introduced to make instant bank to bank payments easier, simpler and accessible across India.

Q9. Which company owns UPI?

A. The National Payments Corporation of India (NPCI) owns Unified Payment Interface (UPI). The UPI was established in 2016, and allows the users to make digital payments in a fast, safe and secure manner.

Q10. What is the authorized capital of NPCI?

A. The authorized capital of the NPCI is Rs. 3 billion.

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