NPCI: The Pulse of Indian Retail Payments
Real-time and Instant fund transfer system
Electronic cheque processing system
USSD-based mobile banking system
And the list goes on….
But are we going to know about these systems?
Definitely Not!
Today it’s all about the Grey Eminence, the NPCI aka National Payments Corporation of India that offers these splendid payment products and services!
NPCI
NPCI is the central hub for India’s retail payment systems. Established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), it was created under the Payment and Settlement Systems Act of 2007 to build a strong foundation for payment and settlement infrastructure in India.
NPCI’s focus is to bring innovations to retail payment systems through the use of technology to achieve greater efficiency in operations and widen the reach of payment systems.
Considering the public good they provide, NPCI was structured as a non-profit organization under Section 25 of the Companies Act, 1956. Their mission is to provide the entire Indian banking ecosystem with the infrastructure needed for both physical and electronic payment and settlement systems.
Alright!
We’ve got the biodata. Now, let’s know the full details!
NPCI Products and Services
Group Companies
NPCI International
Recognizing global market opportunities and NPCI’s expertise in secure, cost-effective payment services, the NPCI board prioritized international expansion. This led to the establishment of NPCI International Payments Limited (NIPL) on April 3, 2020, as a wholly owned subsidiary approved by the NPCI Board and RBI.
The two main goals of NIPL are:
Build a network that allows Indian travelers to conveniently use their RuPay cards and UPI for payments abroad.
- Empower Developing Nations:
NIPL acts as a resource for countries with promising payment ecosystems but devoid of resources. They offer consulting and technological assistance to help these countries develop their own secure and efficient payment systems, bridging the gap in financial and technological infrastructure.
Bharat Bills Pay Ltd (BBPS)
The Bharat Bill Payment System, conceptualized by the RBI and operated by NPCI, serves as a comprehensive platform for paying all types of bills in India. It provides a unified, interoperable “Anytime Anywhere” bill payment service with assured transaction certainty, reliability, and security.
Offering various payment modes, it ensures instant payment confirmation via SMS or receipt. Users can pay bills across categories such as electricity, telecom, DTH, gas, and water bills, and handle repetitive payments like insurance premiums, mutual funds, school and institution fees, local taxes, and housing society dues, all through a single interface.
Global Landscape:
UPI is currently accepted in seven countries: Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and UAE. Rupay, on the other hand, is accepted in five countries: Bhutan, Nepal, Mauritius, Singapore, and UAE. This global acceptance has been made possible solely due to NPCI’s partnerships.
NPCI has collaborated with various entities for interoperability.
These include
- Neo Pay and Mercury Payment Services in UAE,
- Network for Electronic Transfers (NETS) and Banking Computer Services Pte Ltd in Singapore,
- Nepal SBI Bank and Fonepay Payment Services Ltd in Nepal,
- Royal Monetary Authority (RMA) in Bhutan,
- LankaPay Private Ltd in Sri Lanka,
- Bank of Mauritius in Mauritius, and
- Lyra Group in France.
Additionally, NPCI has partnered with for infrastructure development, which includes:
- Al Etihad Payments in UAE,
- The Bank of Namibia in Namibia, and
- The Central Reserve Bank of Peru (BCRP) in Peru
Well!
As the curtain falls, let’s take a moment to see the bigger picture!
P.S: What topic do you think we should explore next? Let us know in the comments.
