NATIONAL
PAYMENT CORPORATION OF INDIA - ECONOMY
News:
RBI asks NPCI to examine
if TPAP status can be given to Paytm parent, announces additional steps
What's
in the news?
●
The Reserve Bank of India (RBI) has asked
the National Payments Corporation of India (NPCI) to examine the request of
One97 Communication Ltd (OCL) to become a Third-Party Application Provider
(TPAP) for UPI channel for continued UPI operation of Paytm app, as per norms.
National
Payments Corporation of India (NPCI):
●
It is an umbrella organisation for
operating retail payments and settlement
systems in India.
Established
by:
●
It 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, to create a robust Payment & Settlement Infrastructure
in India.
●
NPCI is promoted by ten major banks, including the State Bank of India,
Punjab National Bank, Citibank, Bank of Baroda, and HSBC.
●
The regulatory board of the NPCI,
headquartered in Mumbai, includes nominees from the RBI along with nominees
from ten core promoter banks.
Features:
●
It has been incorporated as a “Not for Profit” Company under the
provisions of Section 25 of the Companies
Act 1956 (now Section 8 of the Companies Act 2013).
●
The Company is focused on bringing
innovations in the retail payment systems through the use of technology for
achieving greater efficiency in operations and widening the reach of payment.
Payment
Systems of NPCI:
●
Payment systems that the NPCI can operate
include National Financial Switch (NFS), Immediate Payment System (IMPS),
Aadhaar-enabled Payments System (AEPS) and National Automated Clearing House
(NACH).
Services
Offered by NPCI:
1.
Bharat Bill Payment Interface (BBPI):
●
It was developed by the NPCI to help the
retail payments sector.
●
With the introduction of the BBPI, a
single platform has been made for aggregators
and bill payers.
2.
Immediate Payment Service (IMPS):
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It gives you the option to transfer funds immediately.
●
The facility is available at any given time. The beneficiary details
must be added to transfer funds via IMPS.
●
You can add the IFSC code and the account
number to transfer funds via IMPS.
3.
RuPay:
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NPCI introduced RuPay so that average
citizens can make financial decisions.
●
RuPay is an affordable card and can be issued as credit cards, debit cards, and
prepaid cards.
●
More than 300 million RuPay cards are in
India.
4.
USSD Services:
●
Unstructured Supplementary Service Date
(USSD) was introduced by the NPCI to allow individuals to make banking solutions without the need for the
internet or smartphones.
5.
BHIM:
●
BHIM uses UPI to complete payment
transfers.
●
You can make payments via BHIM by entering
the Virtual Payment Address (VPA) or the registered mobile number.
●
No
smartphone is required to transfer funds via BHIM.
6.
UPI:
●
United Payments Interface (UPI) allows you
to transfer funds from your smartphone.
●
However, you will need to link your bank
account to complete payments via UPI.
●
Money is transferred directly from one
bank to another.