What is NPCI in banking?

NPCI stands for National Payments Corporation of India, and it is a non-profit organization that operates retail payment systems in India. NPCI was founded in 2008 and is promoted by the Reserve Bank of India, the country’s central bank, along with a consortium of major banks.

NPCI is responsible for the design, development, and operation of retail payment systems in India, including the Unified Payments Interface (UPI), Immediate Payment Service (IMPS), Aadhaar Enabled Payment System (AEPS), National Automated Clearing House (NACH), and Bharat Bill Payment System (BBPS), among others.

NPCI’s payment systems enable individuals and businesses to make electronic payments, including fund transfers, bill payments, and merchant payments, among others. The systems are designed to be secure, convenient, and accessible to all, including those in remote areas of the country.

NPCI also works closely with banks, payment service providers, and other stakeholders to promote digital payments and financial inclusion in India. It has played a key role in transforming the payments landscape in the country and making digital payments a way of life for millions of Indians.

Overall, NPCI has been instrumental in driving the adoption of digital payments in India and is a key player in the country’s push towards a cashless economy.