What is NPCI (India)? Know Its Full Form, Role in Economy & Products

  • Published on: 18 Apr 2024
What is NPCI (India)? Know Its Full Form, Role in Economy & Products

National Payments Corporation of India or NPCI (India), is an umbrella organisation that handles all retail payments. Established in 2007 by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), it facilitates a robust payment and settlement infrastructure. 

To extend its services, NPCI (India) has ten core promoter banks, which are: 

  • State Bank of India
  • Punjab National Bank
  • Canara Bank
  • Bank of Baroda
  • Union Bank of India
  • Bank of India
  • ICICI Bank Limited
  • HDFC Bank Limited
  • Citibank India (N.A.)
  • HSBC

Read on to know what is NPCI in banking, how it works, its services and products, and more. 

How Does NPCI Work?

Before you understand how this organisation works, know what does NPCI do. For this, you must know its functions under the provisions of the Payment and Settlement Systems Act, 2007. These include:

  • Providing robust payments and settlement infrastructure for Indians
  • Designing flagship payment infrastructure for the whole banking system 
  • Working on improving the operational efficiency of digital platforms through various technology tools
  • Facilitating interbank settlement for smooth transfer
  • Maintaining payment transfer application 

Payment Services by NPCI 

Here is a quick overview of what services the National Payment Corporation of India provides: 

Type of paymentAbout the service
NFS (National Financial Switch)This is a network of Automated Teller Machines (ATMs) in India. It allows interoperable cash withdrawal, card-to-card funds transfer, cash deposit transactions and other services. 
UPI (Unified Payments Interface)It is an instant payment system developed in 2016. It allows you to make interbank digital payments at any time through multiple apps.
BHIM (Bharat Interface for Money)This is an app that facilitates UPI payments. You can use it to make interbank, merchant, or other payments.
APBS (Aadhaar Payment Bridge System)This system allows Direct Benefit Transfers to the beneficiary account for multiple state or central government schemes.
CTS (Cheque Truncation System)This system uses a digital encryption method to reduce the cost of check deposits and related processes. It has also helped reduce the cheque-clearing time and enabled banks to extend the timeline for accepting cheques.
RuPay This is a card payment system which allows users to make swift fund transfers. It supports debit, credit and prepaid cards.
IMPS (Immediate Payment Service)This is a real-time fund transfer facility available 24X7 and accessible through various channels.
NACH (National Automated Clearing House)This is a web-based transaction option that allows merchants to send and receive bulk or repetitive payments.
NETC (National Electronic Toll Collection)This enables simplified electronic tolling and allows quicker payments with the help of FASTag.

The above is not an exhaustive list of services provided by NPCI (India). The corporation also offers several other payment options, such as Autopay, *99#, e-RUPI, UPI ATM, and more. 

To use these services, you can use your mobile or internet banking and follow the instructions.

Benefits of Cashless Payments

With NPCI facilitating contactless payments, here’s a look into the advantages of these payments:

  • It reduces the risk of theft and loss 
  • Funds deposited in a savings account for online payments can grow through interest
  • It helps you avoid unnecessary expenses and stick to your budget plan 
  • You can make precise payments as required 
  • Eliminates the hassles of carrying cash and allows you to make quicker payments
  • You can earn cashback and rewards on making digital payments 
  • It’s beneficial for the economy as it releases the burden of printing cash money 
  • It simplifies tracking your transactions, as there’s a record that you can access through digital payment apps or on the net banking account
  • It helps the government fight against corruption and money laundering  

Using these secure payment options, you can make up to ₹1 lakh payment daily. Moreover, you pay a total amount of up to ₹5 lakhs for educational and healthcare related expenses. However, the maximum UPI daily transfer limit depends on your bank. 

Thanks to the cashless economy and digital funds transfer facilities, fund transfer has become swift and instantaneous. For the same reason, when you apply for Personal Loan, your loan gets disbursed in 2 minutes after approval. 

At Fibe, we offer up to ₹5 lakhs for all your umpteen planned and unplanned expenses without any end-use restrictions. We also have affordable interest rates and flexible tenure options to make repayments easy. Download our Personal Loan App from the Google Play Store or App Store, or visit our website to get started. 


What does the National Payment Corporation of India do?

It provides electronic payment facilities and settlement systems through its multiple payment models. 

Who owns the National Payment Corporation of India?

NPCI (India) is a non-government organisation owned by a consortium of banks and regulated by the RBI. 

Is NPCI a government or private company?

It is a not-for-profit organisation registered under Section 8 of the Companies Act 2013.


Our top picks

Can Millennial Stress be Resolved by Financial Wellness?
Finance | 3 mins read
How Organisations Can Measure the Impact of Financial Wellness Programs
Finance | 3 mins read
How Can HR help Overcome Staffing Challenges in the Digital Age?
Corporate | 3 mins read
5 Signs of A Good HR Function
Corporate | 3 mins read