The National Payments Corporation of India (NPCI) is an umbrella organization for operating retail payments and settlement systems in India. It was founded in 2008 under the guidance of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to create a robust payment infrastructure in the country and to promote financial inclusion. NPCI plays a crucial role in the development and adoption of various retail payment systems in India.
Some of the key retail payment systems operated by NPCI include:
1. Unified Payments Interface (UPI): UPI is a real-time payment system that allows users to instantly transfer money between bank accounts using their smartphones. It enables peer-to-peer transactions, as well as merchant payments, bill payments, and other transactions.
2. Immediate Payment Service (IMPS): IMPS is an instant interbank electronic fund transfer service available 24×7 throughout the year. It allows customers to transfer funds immediately between bank accounts through mobile phones, internet banking, or ATMs.
3. National Electronic Funds Transfer (NEFT): NEFT is an electronic funds transfer system used for transferring funds from one bank account to another across the country. It operates on a deferred net settlement (DNS) basis and settles transactions in hourly batches.
4. Real-Time Gross Settlement (RTGS): RTGS is a funds transfer mechanism where transfer of money takes place from one bank to another on a real-time basis and on a gross basis. It is primarily used for large-value transactions that require immediate settlement.
5. Bharat Bill Payment System (BBPS): BBPS is an integrated bill payment system that offers interoperable and accessible bill payment services to customers through a network of agents. It facilitates bill payments for various services such as electricity, water, gas, telephone, and DTH.
These payment systems provided by NPCI have significantly transformed the Indian payments landscape, making transactions more convenient, efficient, and secure for individuals and businesses alike. NPCI continues to innovate and introduce new payment solutions to further enhance the digital payments ecosystem in India.