What is NPCI and How Does it Work?

The Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) launched the National Payments Corporation of India (NPCI which is a financial service corporation of India in december 2008 as a Not-for-profit organisation. An organisation which manages retail payments and settlement systems. Its aim is to strengthen the payment and settlement system of India.

Responsibilities of NPCI

The National Payments Corporation of India (NPCI) , a not-for- profit organisation works to encourage and promote electronic payments in India which is owned by several banks of india. RuPay which is India's domestic card network and UPI Unified Payments Interface which is a real time payments interface both are run by NPCI.

UPI (The Unified Payments Interface) , a real time payment interface platform is owned and run by NPCI.

NPCI set the rules, regulations, guidelines, as well as the duties, responsibilities, and liabilities of the participants and also dispute resolution, transaction processing, and settlement cut-off times regarding UPI.

NPCI gives approval of participation to Issuer Banks, PSP Banks, Third Party Application Providers (TPAP), and Prepaid Payment Instrument issuers (PPIs) to participate in UPI.

A reliable, effective, and secure UPI system and network are provided by NPCI

NPCI provides online transaction routing, processing, and settlement services to the participants of UPI

NPCI can conduct audit and can call for data and records of participation, directly or through a third party from the participants of UPI

NPCI gives access to the system to the participating banks of UPI to download reports, raise chargebacks, update the status of UPI transactions etc.

NPCI's Promoter banks

• State Bank of India,
• Punjab National Bank,
• Canara Bank,
• Bank of Baroda,
• Union Bank of India,
• Bank of India,
• ICICI Bank,
• HDFC Bank,
• Citibank
• HSBC.

NPCI's services

UPI

United Payments Interface )UPI), a real-time payment solution which connects bank accounts with UPI platforms on mobile phones eliminating the third part wallet. It establishes a link for direct transfer of money from one bank to another.

Bharat Interface for Money (BHIM)

BHIM is an app that uses UPI and allows easy payments to its customers through registered mobile number or virtual payment address (VPA).

RuPay

NPCI's big initiative is RuPay as a part of Jan Dhan Yojna. It is an international debit and credit card which is issued as prepaid cards, debits cards and credit cards as customer requires.

IMPS

Immediate Payment Service IMPS offers the facility of transferring funds instantly. IMPS does not work as a traditional banking system. It is possible through mobile phones.