What is the Full Form of NPCI

Aug 23, 2022, 16:45 IST

Full form of NPCI

The full form of NPCI is the National Payments Corporation of India. It is an umbrella organization that helps to use retail and residential payments in India. NPCI is the direct result of a scheme between the State Bank of India and the Indian Banks ’Association. NPCI came into operation under the Payment and settlement system Act of 2007 to help create a robust settlement and payment infrastructure in India.

What is NPCI?

List of Banks that promote NPCI are:

• State Bank of India

• Punjab National Bank

• Canara Bank

• Bank of Baroda

• Union Bank of India

• Bank of India

• ICICI Bank

• HDFC Bank

• Citibank

• HSBC

Latest Updates on National Payments Corporation of India

• NPCI launches Global hackathon 'NPCI PayAuth Challenge.' It aims to identify other solutions for payment processing methods in the UPI.

• WhatsApp has introduced payment services in India following NPCI approval. The approval of the National Payment Corporation of India also follows another recent guideline that sets out 30% of the total volume of transactions processed on the Unified Payments Interface (UPI), applicable to all third-party application providers, with effect from 1 January 2021.

Who are the regulatory members of NPCI?

The National Payments Corporation of India is registered under section 8 of the Companies Act 2013. Headquarters are located in Mumbai.

The NPCI Governing Board consists of the following members:

• Biswamohan Mahapatra as the Non-Executive Chairman

• Nominees from the Reserve Bank of India (RBI)

• Nominees from ten core promoter banks.

Main Objective of NPCI

The National Payments Corporation of India (NPCI) was under the support of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) to consolidate and integrate various systems into a national uniform and standard business process that could be used as a payment system. One of the main objectives of the NPCI was to promote an affordable payment system that can assist ordinary people during investment.

Under the PSS Act, 2007, as approved by the RBU, NPCI may apply the following payment systems:

• National Financial Switch (NFS)

• Immediate Payment System (IMPS)

• National Automatic Clearing House (ACH)

• Aadhaar Enabled Payments System (AEPS)

• Operation of Cheque Truncation System

Products of NPCI

RuPay : RuPay is a domestic card system with a magnetic line and EMV chip. The card is now accepted at all ATMs and issued to 300 cooperative banks and Rural Regional Banks (RRBs) in India.

National Common Mobility Card: The RuPay Contactless card is a toll-free payment technology that allows cardholders to use their card at toll-free payment terms without the need to swipe or insert a card.

Bharat Interface for money (BHIM): Bharat Interface for Money (BHIM) is a mobile payment system based on NPCI's Unified Payments Interface (UPI). It provides a convenient place to send or receive money to other customers using the UPI. For more information on BHIM, see the attached article.

Unified Payments Interface (UPI): The Unified Payments Interface (UPI) was launched on 11 April 2016 as an instant payment system between banks. This payment system provides a mobile platform for instant transfers between two bank accounts.

Bharat Bill Payment System: The Bharat Bill Payment System is a system adopted by NPCI and the Reserve Bank of India (RBI) to pay off all debts that provide a cooperative and affordable billing service to its customers.