What is National Payments Corporation of India?

What is National Payments Corporation of India?

National Payments Corporation of India was registered under section 25 of companies’ act 1956 and became functional from April 2009 as an umbrella organization for all retail payments system in India. It was promoted by ten banks namely; State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, and Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC with paid up capital of Rs. 100 crore.  The core objective of NPCI is consolidating and integrating the multiple systems with different service level in retail payments into nation-wide uniformity and standardization. The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.

NPCI on its commencement has taken over the National Financial Switch (NFS) from Institute for Development and Research in Banking Technology (IDRBT).Since inception, NPCI has been expanding and extending the reach of both existing and innovative payment products for greater customer convenience. From a single service of switching of inter-bank ATM transactions, the range of services has now grown to Cheque Clearing, Immediate Payments Service (24x7x365), Automated Clearing House, Electronic Benefit Transfer and a domestic card payment network named RuPay to provide an alternative to international card schemes.NPCI also launched PaySecure for RuPay cards, an e-commerce system similar to’PayPal’ that allows secure online payments. Until now, these cards worked only at ATMs and point-of-sale terminals at retail outlets.

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