NPCI (National Payments Corporation of India)| Ias Banenge

Context:

Recently, the National Payments Corporation of India i.e., NPCI unveiled several new products with an aim to create an inclusive, resilient, and sustainable digital payments ecosystem.

Relevance:

GS III: Indian Economy

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Dimensions of the Article:

1. New Product Offerings in Digital Payments
2. National Payments Corporation of India (NPCI)

New Product Offerings in Digital Payments:

• Credit Line via UPI:
  • Allows pre-sanctioned credit lines from banks through UPI.
• UPI LITE X:
  • Facilitates offline payments.
  • UPI Tap & Pay enhances QR Code and NFC technology for digital payments.
  • Offers the option to tap NFC-enabled QR codes for payment at merchant locations.
• Hello UPI:
  • Introduces Conversational Payments on UPI.
  • Enables voice-enabled UPI payments through UPI Apps, telecom calls, and IoT devices in Hindi and English.
  • Future plans include availability in various regional languages.
• BillPay Connect:
  • Supports Conversational Bill Payments nationwide through a Bharat BillPay-provided nationalized number.

National Payments Corporation of India (NPCI):

• Purpose:
  • Acts as an umbrella organization for managing retail payments and settlement systems in India.
• Initiative:
  • Established as a joint initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the Payment and Settlement Systems Act, 2007.
• Legal Status:
  • Registered as a “Not for Profit” Company under Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013).
• Promoters:
  • Promoted by ten major banks, including the State Bank of India, Punjab National Bank, Citibank, Bank of Baroda, and HSBC.
• Regulatory Board:
  • Headquartered in Mumbai, it is governed by a regulatory board consisting of nominees from the RBI and ten core promoter banks.

-Source: Indian Express