NPCI – Full Form, Roles and Responsibilities
NPCI Full Form
The full form of NPCI is National Payments Corporation of India. Established in 2008 under the guidance of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), NPCI is responsible for managing and operating several payment systems in India.
Services Offered by NPCI
NPCI is responsible for managing and operating several payment systems in India, including
1. UPI (Unified Payments Interface)
UPI is a real-time payment system that allows users to transfer money between bank accounts instantly using a mobile phone.
2. NACH (National Automated Clearing Service)
NACH is a payment system that facilitates bulk payment transactions, such as salaries, pensions, dividends, and interest payments.
3. Immediate Payment Service (IMPS)
IMPS is a 24×7 instant payment system that allows users to transfer funds from one bank account to another.
4. Bharat Bill Payment System
BBPS is a centralised bill payment system that allows users to pay their utility bills, such as electricity, water, and gas bills, through a single platform.
5. RuPay
RuPay functions similar to that of Visa and Mastercard debit cards and credit cards facilitating seamless transactions across India.
6. BHIM (Bharat Interface for Money)
BHIM is an app that runs on UPI allowing users to make payments via their registered mobile number or VPA (Virtual Payment Address).
7. *99# or USSD Services
These services are designed for citizens who don’t have access to smartphones, internet or even traditional bank accounts.
8. Aadhaar Enabled Payment System (AePS)
It is a system that enables bank customers to use their Aadhaar number and biometric authentication for cash withdrawals, balance enquiry, and fund transfers.
Also Read
Roles and Responsibilities of NPCI
- Responsible for creating a robust and efficient payment infrastructure in the country
- Promote digital payments and financial inclusion in India
- NPCI is responsible for operating UPI
- NPCI holds the right to conduct an audit on UPI participants
- NPCI sets rules and regulations of the PSPs and TPAP, with respect to UPI
Final Word
NPCI (full form – National Payments Corporation of India) has played a crucial role in transforming India’s payment ecosystem. Its initiatives have helped in promoting digital payments, enabling financial inclusion, ensuring secure transactions, reducing the cost of transactions, and boosting the Indian economy.
