Definition
NPCI (National Payments Corporation of India) is an organization that operates retail payment systems such as UPI, RuPay, IMPS, and other digital infrastructure in India, enabling secure and real-time transactions.
How this works
NPCI builds and maintains payment networks connecting banks, wallets, and financial institutions. It standardizes transaction protocols, provides APIs, and ensures settlement, security, and interoperability across different digital payment systems.
Benefits
• Enables real-time, interoperable payments across banks
• Provides secure and standardized digital payment infrastructure
• Reduces transaction costs and settlement times
• Supports financial inclusion through UPI and RuPay
• Facilitates innovation and growth in the Indian digital payments ecosystem
FAQs
Q1. What is the role of NPCI?
NPCI manages and operates retail payment systems, enabling secure, interoperable, and real-time transactions across India.
Q2. Which payment systems are managed by NPCI?
UPI, RuPay, IMPS, NACH, AePS, and other retail payment systems are managed by NPCI.
Q3. How does NPCI support financial inclusion?
Through initiatives like UPI, RuPay cards, and AePS, NPCI enables digital payments for unbanked and underserved populations.
Q4. Can banks and fintechs integrate with NPCI systems?
Yes. NPCI provides APIs and infrastructure for banks, wallets, and fintechs to integrate and process transactions.