MBA Gen- AB Sec
National Payments Corporation of India (NPCI) is the umbrella organisation for
all retail payment systems in India, which aims to allow all Indian citizens to have
unrestricted access to e-payment services
Founded in 2008, NPCI is a not-for-profit organisation registered under section 8
of the Companies Act 2013.
Why was NPCI set up?
Before NPCI, there were many systems providing different services at different
levels. NPCI was proposed so as to consolidate and integrate all these systems
and provide a uniform and standard business process for all retail payment
systems in the country.
The values define the success of most of the companies. At NPCI, it’s values have shaped it’s culture, it’s
work ethics, and it’s decisions; helping it push its limits and strive for a better today thus laying the foundation
for a successful tomorrow.
As one dive deep into its core values, one will explore what defines it and its work environment:
The organisation is owned by a consortium of major banks, and has been promoted by the country’s central
bank, the Reserve Bank of India.
Presently, there are ten core promoter banks:
1) State Bank of India
2) Punjab National Bank
3) Canara Bank
4) Bank of Baroda
5) Union Bank of India
6) Bank of India
7) ICICI Bank
8) HDFC Bank
9) Citibank, and
In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all
The Board consists of “B.Sambamurthy” as an interim chairman, Nominee from RBI and Nominees from ten
core promoter banks.
ATechnical Advisory Committee has also been constituted with two professors of IIT Bombay.
• N. L. Sarda is the chairman and G. Sivakumar is the Co-Chairman of this committee.
• Members of this committees are drawn from banks at the level of Deputy general manager/ Assistant
• National Financial Switch (NFS) ATM Network: It connects 1,98,953 ATMs of 449 banks The service
came into effect from October 15, 2009.
• Over the span of few years, NFS ATM network has grown many folds and is now the leading
multilateral ATM network in the country.
• NFS has established a strong and sustainable operational model with in-house capabilities
and today can be compared at par with other major and well-established switch networks.
• The operational functions and services are at par with most of the global ATM networks.
• Cheque Truncation System (CTS): It is Online image-based cheque clearing system. It has fully
migrated in 3 grids-southern, western & northern grids from MICR centers.
• Aadhaar Payments Bridge System (APBS) has more than 358 banks.
• *99*99# - Aadhar linked subsidy information
• BharatQR - A common QR code built for ease of payments.
NPCI jointly worked with International card Schemes to develop a
common standard QR code specifications. BQR is Person to Merchant
(P2M) Mobile payment solution.
Payment Using BQR enabled Mobile banking Application/wallet: Merchants need to display QR
codes in their premises. User can scan these QR via BQR enabled mobile banking app and pay using
Card linked account / VPA/ IFSC + Account / Aadhaar.
• Immediate Payment Service (IMPS): It is an instant
interbank electronic fund transfer service through
Mobile phones, ATM, Internet banking etc.
• National Automated Clearing House (NACH): NACH
System can be used for making bulk transactions
towards distribution of subsidies, dividends, interest,
salary, pension etc. and also for bulk transactions
towards collection of payments pertaining to telephone,
electricity, water, loans, investments in mutual funds,
insurance premium etc.
• Aadhaar-Enabled Payment System (AePS) is a bank led model which allows online
interoperable financial inclusion transaction at PoS (MicroATM) through the Business
correspondent of any bank using the Aadhaar authentication.
AePS allows you to do six types of transactions like
• Cash Withdrawal
• Cash Deposit
• Balance Enquiry
• Aadhaar to Aadhaar Fund Transfer
• Mini Statement
• Best Finger Detection
• RuPay – It is a Domestic Card Scheme to provide an alternative to international card
schemes. It has issued over 20 crore cards and enabled 10,70,000 PoS terminals in the
country. The benefits of RuPay debit card are the flexibility of the product platform, high
levels of acceptance and the strength of the RuPay brand-all of which will contribute to an
increased product experience.
• Unified Payments Interface (UPI) : It is the newest and most advanced addition to the
NPCI revolution which was launched on 11April 2016. it is aimed at providing a single ID to
transfer the funds anywhere (reducing the use of IFSC codes).
Bharat Interface for Money (BHIM) is an app that lets you make simple, easy and quick payment
transactions using Unified Payments Interface (UPI). You can make instant bank-to-bank payments and
Pay and collect money using just Mobile number or Virtual Payment Address (UPI ID).
*99# : Banking customers can avail this service by dialing *99#, a “Common number across all Telecom
Service Providers (TSPs)” on their mobile phone and transact through an interactive menu displayed on
the mobile screen.
• Key services offered under *99# service include, Sending and Receiving interbank account to
account funds, balance enquiry, setting / changing UPI PIN besides host of other services.
• *99# service is currently offered by 41 leading banks & all GSM service providers and can be
accessed in 13 different languages including Hindi & English.