National Payments Corporation of India

Last updated

NPCI
Company type Section 8
IndustryPayments
Founded2008;16 years ago (2008)
Headquarters Mumbai, Maharashtra, India [1]
Key people
  • Ajay Kumar Chaudhary
    (Non-Exe Chairman) [2]
  • Dilip Asbe
    (MD & CEO) [3] [4]
Products
Owner Reserve Bank of India, Ministry of Finance, Government of India
Number of employees
1001+
Subsidiaries NIPL [5]
Website www.npci.org.in

The National Payments Corporation of India (NPCI) is an organization that operates retail payments and settlement systems in India. The organization 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 and settlement infrastructure in India. [6] [7]

Contents

Organisation

Founded in December 2008, the NPCI is a not-for-profit organisation registered under Section 8 of the Companies Act 2013, established by the Reserve Bank of India and the Indian Banks' Association. The organisation is owned by a consortium of major banks, [8] and has been promoted by the country's central bank, the Reserve Bank of India. The NPCI was incorporated in December 2008 and the Certificate of Commencement of Business was issued in April 2009. The authorised capital has been pegged at ₹3 billion (US$38 million) and paid-up capital is ₹1 billion (US$13 million).

Initially, there were ten promoter banks viz. 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. In 2016, the shareholding was diluted to include 13 additional public sector banks, 15 additional private sector banks, 1 additional foreign bank, 10 multi-state co-operative banks and 7 regional rural banks. The Board consists of Biswamohan Mahapatra as the Non Executive Chairman, Nominees from the Reserve Bank of India and Nominees from ten core promoter banks. [9] Dilip Asbe is the current managing director and chief executive officer of the NPCI after A. P. Hota, who retired from the post on 10 August 2017. [10]

NPCI International Payments Limited (NIPL)

NPCI has created a separate subsidiary to take its product to the global market. The organization is getting offers from nations around Asia, Africa and the Middle East to improve their payment infrastructure. Internationalization of RuPay and Unified Payment Interface (UPI) are the primary focus of the NPCI International Payments Limited (NIPL). [11] [12]

In 2021, Malaysian company Merchantrade Asia partnered with NIPL to send remittances to India through UPI infrastructure. [13]

To make it easier for UPI payments to be accepted in France, NPCI International Payments (NIPL) has teamed up with Lyra, a proximity payments and e-commerce firm based in France. Starting with the Eiffel Tower, the strategic partnership guarantees a smooth integration of the UPI payment method. [14]

NPCI Bharat BillPay Limited (NBBL)

As from April 2021, NPCI created a new subsidiary for Bharat Bill Payment System (BBPS) to increase growth especially in business to consumer segment for small businesses. This is done in view of growing traffic and workload from UPI, IMPS, Aadhaar Enabled Payment System and National Electronic Toll Collections. NBBL is a public company registered in December 2020. [15] [16]

Services

The corporation's current and future service portfolio includes:

Aadhaar Enabled Payment System (AePS)

A network of Micro ATMs using Aadhaar authentication. National Payments Corporation of India (NPCI) announced the transactions of Aadhaar Enabled Payment System (AePS) for the month of July 2019 have crossed the milestone number of 200 million. AePS is a bank-led model which allows basic interoperable banking transactions at PoS (MicroATM) through the Business correspondent of any bank by using Aadhaar authentication. [17] AePS had a transaction value of ₹22,350.88 crore and a volume of 8.396 crore in January 2024. [18]

Bharat Bill Payment System (BBPS)

The Bharat Bill Payment System is a Reserve Bank of India (RBI) conceptualised system driven by the NPCI. It is a one-stop ecosystem for payment of all bills, providing an interoperable and accessible "Anytime Anywhere" bill payment service to all customers across India with certainty, reliability and safety. Bharat BillPay has multiple modes of payment and provides instant confirmation of payment via an SMS or receipt. It offers myriad bill collection categories like electricity, telecom, DTH, gas, water bills etc. through a single window. More categories may be added in the future, to include insurance premium, mutual funds, school fees, institution fees, credit cards, local taxes, invoice payments, etc. An effective mechanism for handling consumer complaints has also been put in place. Bharat BillPay transactions can be initiated through multiple payment channels like Internet, Internet Banking, Mobile, Mobile-Banking, POS (Point of Sale terminal), Mobile Wallets, MPOS (Mobile Point of Sale terminal), Kiosk, ATM, Bank Branch, Agents and Business Correspondents. Bharat BillPay supports multiple payment modes. This includes Cards (Credit, Debit and Prepaid), NEFT Internet Banking, UPI, Wallets, Aadhaar based Payments and Cash. [19]

BharatQR

A common QR code developed by NPCI in collaboration with American Express, Mastercard and Visa for ease of payments and interoperability. [20]

BHIM

BHIM is a mobile app to act as Client software for the Unified Payments Interface. [21]

BHIM Aadhaar Pay

BHIM Aadhaar pay is an Aadhaar based payments interface which allows real time payments to Merchants using Aadhaar number of Customer & authenticating them through their biometrics. [22]

Cheque Truncation System (CTS)

CTS is based on a cheque truncation or online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. [23]

Digital Rupee

The Digital Rupee (e₹) or eINR or E-Rupee is a tokenised digital version of the Indian Rupee, to be issued by the Reserve Bank of India (RBI) as a central bank digital currency (CBDC). The Digital Rupee was proposed in January 2017 and will be launched in the 2022-23 financial year. The plan is to incorporate distributed ledger into Digital Rupee.

Like banknotes it will be uniquely identifiable and regulated by Central Bank. Liability lies with RBI. Plans include online and offline accessibility. RBI will launch Digital Rupee for Wholesale (e₹-W) catering to financial institutions for interbank settlements and Digital Rupee for Retail (e₹-R) for consumer and business transactions. CBDC will remove ₹4,984.80 crore security printing cost borne by the general public, businesses, banks, and RBI on physical currency.

Immediate Payment Service (IMPS)

Immediate Payment Service is a real time inter bank payment system. [24]

National Automated Clearing House

A centralised clearing service that aims at providing interbank high volume, low value transactions that are repetitive and periodic in nature. [25]

National Common Mobility Card - Rupay Contactless

Rupay Contactless is a contactless payment technology that allows cardholders to wave their card in front of contactless payment terminals without the need to physically swipe or insert the card into a point-of-sale device. [26]

National Electronic Toll Collection

FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion. FASTag (RFID Tag) is affixed on the windscreen of the vehicle and enables a customer to make the toll payments directly from the account which is linked to FASTag. The latest version 2.0 can also be used to buy fuel. IDFC First Bank has become the first one to get an approval from the RBI. [27] The Ministry of Road Transport and Highways (MoRTH) has declared that all lanes at all toll plazas on national highways across the country will be dedicated Fastag lanes from 1 December 2019. [28]

National Financial Switch

Network of shared automated teller machines in India. [29]

RuPay

RuPay is a domestic card scheme of India. The card has Magnetic stripe (for Backward compatibility) and an EMV chip. The RuPay card is now accepted at all ATMs, Point-of-Sale terminals and most online merchants in the country. More than 300 cooperative banks and Regional Rural Banks (RRBs) in the country have also issued RuPay ATM cards. [30]

Unified Payments Interface (UPI)

Unified Payments Interface is a real-time interbank payment system for sending or receiving money. It is integrated with more than 358 banks in India. Consumers can participate in P2P transfer as long as they both have an account in one of the registered banks. To initiate fund transfer, users have to use any UPI supporting Android or iOS app, link their bank accounts and generate BHIM UPI PIN. Funds can be transferred via the following methods:

Once the fund transfer is initiated, money is debited from payer's bank account and deposited in the recipient's bank account in real-time. This system works 24x7, including weekends and bank holidays. [31]

*99# USSD

An USSD channel service for UPI mobile banking launched in November 2012. Only public sector telecom service provider Bharat Sanchar Nigam Limited BSNL and Mahanagar Telephone Nigam Limited MTNL are offering this service. It uses quick codes for transactions and doesn't require smartphone and access to internet. The interface is developed by National Unified USSD Platform (NUUP) to overcome the problem of poor internet connectivity in rural areas with 12 regional languages. This service is being currently offered by 51 banks. BHIM app also supports USSD features. Understanding the importance of mobile banking in financial inclusion in general and of *99# in particular, various regulatory/trade bodies came together to ensure on boarding of all TSPs on *99# (USSD 1.0). With the wider ecosystem (11 TSPs), *99# was launched by Prime minister Narendra Modi on 28 August 2014, as part of Pradhan Mantri Jan Dhan Yojna. [32]

UPI 123PAY

It a 3-step method to initiate and execute UPI services for feature phone users without the use of internet connection or USSD channel. It is based on Interactive voice response (IVR) technology which is good specially for rural areas. It is launched by RBI on 10 March 2022. [33]

Digital Payments Score

A Digital Payments Score (DPS) will be developed by NPCI with the intention of bolstering the nation's credit scoring system and fostering increased productivity and expansion. When determining criteria, DPS may consider things like a person's financial stability, which includes timely payments, regular bill payments, and whether or not the person regularly transacts for high-value commodities and has the income to support them. [34]

Recent awards and recognition

See also

Related Research Articles

<span class="mw-page-title-main">Mobile payment</span> Payment services via a mobile device

Mobile payment, also referred to as mobile money, mobile money transfer and mobile wallet, is any of various payment processing services operated under financial regulations and performed from or via a mobile device. Instead of paying with cash, cheque, or credit card, a consumer can use a payment app on a mobile device to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history, it is only in the 21st century that the technology to support such systems has become widely available.

Punjab & Sind Bank is an Indian public sector bank headquartered in New Delhi. As of 18 April 2023, the bank has 1553 branches which are widely spread across India out of which 635 branches are in the state of Punjab, and 25 zonal offices located all over India.

Payment and settlement systems are used for financial transactions in India. Covered by the Payment and Settlement Systems Act of 2007, legislated in December 2007, they are regulated by the Reserve Bank of India (RBI) and the Board for Regulation and Supervision of Payment and Settlement Systems.

Amazon Pay is an online payments processing service owned by Amazon. Launched in 2007, Amazon Pay uses the consumer base of Amazon.com and focuses on giving users the option to pay with their Amazon accounts on external merchant websites. As of March 2021, the service became available in Austria, Belgium, Cyprus, Denmark, France, Germany, Hungary, India, the Republic of Ireland, Italy, Japan, Luxembourg, Malaysia, Netherlands, Portugal, Spain, Sweden, Switzerland, United Kingdom, and the United States.

RuPay is an Indian multinational financial services and payment service system, conceived and launched by the National Payments Corporation of India (NPCI) in 2012. It was created to fulfil the Reserve Bank of India's (RBI) vision of establishing a domestic, open and multilateral system of payments. RuPay facilitates electronic payment at all Indian banks and financial institutions. NPCI maintains ties with Discover Financial and JCB to enable the RuPay Card scheme to gain international acceptance.

<span class="mw-page-title-main">Immediate Payment Service</span> Electronic funds transfer system in India

Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer system in India. IMPS offers an inter-bank electronic fund transfer service through mobile phones. The service is available 24/7 throughout the year including bank holidays. National Electronic Funds Transfer (NEFT) was also made available 24/7 from December 2019. Real-time gross settlement (RTGS) was also made available 24/7 from 14 December 2020.

Mobile payments is a mode of payment using mobile phones. Instead of using methods like cash, cheque, and credit card, a customer can use a mobile phone to transfer money or to pay for goods and services. A customer can transfer money or pay for goods and services by sending an SMS, using a Java application over GPRS, a WAP service, over IVR or other mobile communication technologies. In India, this service is bank-led. Customers wishing to avail themselves of this service will have to register with banks which provide this service. Currently, this service is being offered by several major banks and is expected to grow further. Mobile Payment Forum of India (MPFI) is the umbrella organisation which is responsible for deploying mobile payments in India.

<span class="mw-page-title-main">Bharat Bill Payment System</span> Integrated bill payment system in India

Bharat Bill Payment System (BBPS) is an integrated bill payment system in India offering interoperable and accessible bill payment service to customers through a network of agents of registered members as Agent Institutions (AI), enabling multiple payment modes, and providing instant confirmation of payment.

<span class="mw-page-title-main">Unified Payments Interface</span> Indian instant payment system

Unified Payments Interface, commonly referred to as UPI, is an Indian instant payment system as well as protocol developed by the National Payments Corporation of India (NPCI) in 2016. The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used on mobile devices to instantly transfer funds between two bank accounts. The mobile number of the device is required to be registered with the bank. The UPI ID of the recipient can be used to transfer money. It runs as an open source application programming interface (API) on top of the Immediate Payment Service (IMPS), and is regulated by the Reserve Bank of India (RBI). Indian Banks started making their UPI-enabled apps available on Google Play on 25 August 2016.

Oxigen Services is an Indian fintech company. It is involved in the micropayment of services and remittances in real time.

BHIM is an Indian mobile payment app developed by the National Payments Corporation of India (NPCI), based on the Unified Payments Interface (UPI). Launched on 30 December 2016, it is intended to facilitate e-payments directly through banks and encourage cashless transactions.

The National Unified USSD Platform (NUUP), also known as the *99# service, is a platform that provides access to the Unified Payment Interface (UPI) service over the USSD protocol. Initiated by the Government of India and developed by the National Payments Corporation of India (NPCI), it facilitates access to banking services from mobile phones.

<span class="mw-page-title-main">Airtel Payments Bank</span> Indian Payments Bank

Airtel Payments Bank is an Indian payments bank with its headquarters in New Delhi. The company is a subsidiary of Bharti Airtel. On 5 January 2022, it was granted the scheduled bank status by the Reserve Bank of India under the second schedule of RBI Act, 1934.

India Stack refers to the project of creating a unified software platform to bring India's population into the digital age. Its website describes its mission as follows: "India Stack is a set of open APIs that allows governments, businesses, startups and developers to utilize a unique digital Infrastructure to solve India’s hard problems towards presence-less, paperless, and cashless service delivery" Of the four "distinct technology layers" mentioned on the same page, the first, the "Presenceless Layer" is the most controversial as it involves storing biometric data such as fingerprints for every citizen. Since such markers are widely being adopted to enable cashless payment, the issue arises of fraudulent use of biometrics. The other layers are the Paperless Layer, which enables personal records to be associated with one's online identity; the Cashless Layer, a single interface to all national banks and online wallets; and the Consent Layer, which aims to maintain security and control of personal data.

PhonePe is an Indian digital payments and financial services company headquartered in Bengaluru, Karnataka, India. PhonePe was founded in December 2015, by Sameer Nigam, Rahul Chari and Burzin Engineer. The PhonePe app, based on the Unified Payments Interface (UPI), went live in August 2016.

Paytm Payments Bank (PPBL) is an Indian payments bank, founded in 2017 and headquartered in Noida. In the same year, it received the license to run a payments bank from the Reserve Bank of India and was launched in November 2017. In 2021, the bank received a scheduled bank status from the RBI.

<span class="mw-page-title-main">BharatQR</span> QR code payment system in India

BharatQR, developed by NPCI, Mastercard, and Visa, is an integrated payment system in India for mobile device. The system was launched in September 2016. It facilitates users to transfer their money from one source to another. The money transferred through BharatQR is received directly in the user's linked bank account. It provides a common interface between RuPay, Mastercard, Visa and American Express, and is interoperable with all the banks. Currently, BharatQR is supported on both Android and iOS devices.

National Automated Clearing House, introduced by National Payments Corporation of India, is a centralised clearing service that aims at providing interbank high volume, low value transactions that are repetitive and periodic in nature. Offering credit and debit service to corporates, banks, and financial institutions, the service, aimed at integrating all regional ECS into one National Payment System, is claimed to be better than its predecessor, Electronic Clearing Service.

<span class="mw-page-title-main">Digital rupee</span> Official currency of India

The Digital Rupee (e₹) or eINR or E-Rupee is a tokenised digital version of the Indian Rupee, issued by the Reserve Bank of India (RBI) as a central bank digital currency (CBDC). The Digital Rupee was proposed in January 2017 and launched on 1 December 2022. Digital Rupee is using blockchain distributed-ledger technology.

Sarvatra Technologies Private Limited is an Indian fintech company, headquartered in Pune, Maharashtra, that develops banking software and provides PaaS, SaaS, and cloud computing solutions to cooperative, private, and public sector banks in India.

References

  1. ↑ "National Payments Corporation of India". Npci.org.in. Archived from the original on 5 December 2018. Retrieved 16 March 2011.
  2. ↑ "Board of Directors". NPCI. Archived from the original on 28 April 2021. Retrieved 4 April 2021.
  3. ↑ "Management Team". NPCI. Archived from the original on 11 January 2022. Retrieved 11 January 2022.
  4. ↑ "Mobile money transfer fee cut to 10p". The Indian Express. 15 March 2011. Archived from the original on 10 April 2011. Retrieved 16 March 2011.
  5. ↑ "NPCI International". www.npci.org.in. Archived from the original on 4 November 2020. Retrieved 31 October 2020.
  6. ↑ "About NPCI - Enabling digital payments in India | NPCI". Archived from the original on 29 October 2020. Retrieved 1 November 2020.
  7. ↑ "About NPCI - Enabling digital payments in India | NPCI". www.npci.org.in. Archived from the original on 29 October 2020. Retrieved 1 November 2020.
  8. ↑ "Watal Report, December 2016" (PDF). Ministry of Finance. Ministry of Finance. Archived from the original (PDF) on 18 May 2017. Retrieved 14 January 2017.
  9. ↑ "B Sambamurthy appointed as NPCI interim Board chairman". Economic Times. 21 September 2017. Archived from the original on 20 September 2018. Retrieved 24 October 2017.
  10. ↑ "NPCI names Dilip Asbe as interim CEO, AP Hota retires". Business Standard News. 14 August 2017. Archived from the original on 15 March 2019. Retrieved 9 October 2017.
  11. ↑ "NPCI launches a new subsidiary to promote its international business". Moneycontrol. Archived from the original on 4 February 2022. Retrieved 20 August 2020.
  12. ↑ Nandi, Shreya (19 August 2020). "NPCI launches international unit to expand reach of UPI". Livemint. Archived from the original on 30 September 2020. Retrieved 20 August 2020.
  13. ↑ "Merchantrade Asia, NPCI offer real-time remittances to India". The Star. Archived from the original on 4 August 2021. Retrieved 4 August 2021.
  14. ↑ "You can now reserve an Eiffel Tower visit using UPI".
  15. ↑ Bhasin, Tinesh (1 April 2021). "NPCI hives off bill payments platform into a separate subsidiary". mint. Archived from the original on 4 February 2022. Retrieved 3 April 2021.
  16. ↑ Manikandan, Ashwin. "NPCI transfers automatic bill payments business to new subsidiary". The Economic Times. Archived from the original on 2 April 2021. Retrieved 3 April 2021.
  17. ↑ "Aadhaar enabled payment system transactions cross 200 million in July 2019, confirms NPCI". Zee Business. 12 August 2019. Archived from the original on 26 August 2019. Retrieved 26 August 2019.
  18. ↑ "UPI transactions touches Rs 18.41 lakh crore in January, shows NPCI data". Moneycontrol. 2 February 2024. Retrieved 4 February 2024.
  19. ↑ Bharat Bill Payment System in India's Perspective. KPMG. 2018.
  20. ↑ "BHARAT QR CODE | Ministry of Electronics and Information Technology, Government of India". www.meity.gov.in. Archived from the original on 18 March 2020. Retrieved 1 April 2020.
  21. ↑ "Everything you need to know about NCPI's BHIM app for Android and iOS". The Indian Express. 11 May 2019. Archived from the original on 1 January 2020. Retrieved 1 April 2020.
  22. ↑ www.ETtech.com. "Major Indian banks yet to enable Aadhaar payments on BHIM app - ETtech". The Economic Times. Retrieved 1 April 2020.
  23. ↑ "What is Cheque Truncation System? CTS Benefits and Highlights of CTS Check. | Nelito | Blog". www.nelito.com. Archived from the original on 11 August 2020. Retrieved 1 April 2020.
  24. ↑ nitinbhatia121 (20 April 2015). "What is IMPS - Immediate Payment Service?". nitinbhatia.in. Archived from the original on 9 August 2020. Retrieved 1 April 2020.{{cite web}}: CS1 maint: numeric names: authors list (link)
  25. ↑ Jose, Tojo (22 October 2017). "What is National Automated Clearing House (NACH)?". Indian Economy. Archived from the original on 19 September 2020. Retrieved 1 April 2020.
  26. ↑ "One Nation One Card: All you need to know about the National Common Mobility Card launched by PM Modi". The Financial Express. 7 March 2019. Archived from the original on 21 July 2019. Retrieved 1 April 2020.
  27. ↑ Das, Mamuni (30 July 2019). "Now, use Fastag 2.0 to pay for fuel on highways". @businessline. Archived from the original on 21 August 2019. Retrieved 21 August 2019.
  28. ↑ "Fastags to be mandatory at all toll plazas from December 2019". CarWale. 22 July 2019. Archived from the original on 21 August 2019. Retrieved 21 August 2019.
  29. ↑ "100 banks join National Financial Switch network as direct members". The Economic Times. 7 December 2016. Archived from the original on 1 May 2023. Retrieved 1 April 2020.
  30. ↑ "What is the difference between RuPay Card, VISA Card and MasterCard?". Jagranjosh.com. 9 July 2018. Archived from the original on 24 October 2020. Retrieved 1 April 2020.
  31. ↑ "How UPI Works? Unified Payments Interface Explained". Feedough. 5 February 2019. Archived from the original on 23 September 2020. Retrieved 1 April 2020.
  32. ↑ "NUUP: Dial *99# and make easy payments without using internet by any featured phone through a new USSD based technology". The Financial Express. 9 December 2016. Archived from the original on 21 August 2019. Retrieved 21 August 2019.
  33. ↑ "Feature phones get 'UPI Pay123' tech". The Times of India. 9 March 2022. ISSN   0971-8257 . Retrieved 10 February 2024.
  34. ↑ Kawale, Ajinkya (7 February 2024). "NPCI working on Digital Payments Score to scale up credit economy in India". Business Standard. Retrieved 10 February 2024.
  35. ↑ "NPCI wins Golden Peacock Award for BHIM UPI" (PDF). Archived (PDF) from the original on 16 November 2018. Retrieved 16 November 2018.
  36. ↑ "ET Awards 2018 for Policy Change Agent of the Year: NPCI". The Economic Times. 7 September 2018. Archived from the original on 16 November 2018. Retrieved 16 November 2018.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.