What is the full form of NPCI?
The full form of NPCI is National Payments Corporation of India. For all the retail payment companies in India, it is a collaborative organization. NPCI was established and supported by the Indian Banks Association under the RBI (Reserve Bank of India). Under the provisions of the Settlement & Payment Systems Act 2007, created the NPCI.
There are ten core promoter banks within the NPCI, including PN BSBI, Canara Bank, Union Bank of India, Baroda Bank, ICICI Bank, HDFC Bank, HSBC & Citibank. In recent years, whenever the Indian government promotes the entire digitization of money and digital payments, NPCI has made a big impact on the retail transaction.
Key objectives of NPCI
The NPCI ‘s fundamental goal is to provide improved infrastructure for the entire banking industry to introduce in both digital and physical settlement & payment of money transfer systems. For both digital and physical transactions, retail transactions for the company, including everyday fees, must provide an efficient settlement mechanism, the NPCI appears to handle it. The main objectives of the NPCI are,
- NPCI ‘s primary goal is to simplify, merge and incorporate various payment systems with varying standard of coverage into a single national standard uniform & business process for all retail money transaction. It is established under the guidance of the central bank RBI and the Indian Banks Association and is funded by them.
- Another NPCI goal is to design and promote an effective financing process or system such that by saving time and cost, the average person who makes retail purchases on day-to-day basis profits from the method.
- NPCI, therefore, operates in the development and implementation of a national system that can be used by retailers on a day-to-day scale while losing legitimacy and ensuring that the same system is standardized all over the nation, also, uniformity is ensured.
Services of NPCI
There are many services offered by the NPCI. Few are listed below.
NFS (National Financial Switch)
It is an ATM network through which the ATMs in the country are managed.
IMPS (Immediate Payment Service)
The cash can be transferred directly. Mobile, Direct, & internet banking could be a method of transition.
CTS (Cheque Truncation System)
The cut off time for cheque clearance may be extended via the CTS system. It made the details more straightforward, and also the clearing time needed, which is lower for a cheque.
Utilizing the Quick Response ( QR) code for separate vendors, the service line takes care of retail transaction transactions. It is possible to allow payments using QR codes via online banking.