National Payments Corporation of India – NPCI

  • National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India.
  • It is under the provisions of the Payment and Settlement Systems Act, 2007
  • It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).
  • NPCI has 10 promoter banks.
  • In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors.
  • It has been incorporated as a “Not for Profit” Company

NPCI Developments

Bharat Bill Payment System (BBPS)

  • It is an integrated bill payment system in India
  • It enables multiple payment modes, and providing instant confirmation of payment

National Electronic Toll Collection (NETC)

  • NETC offers an interoperable nationwide toll payment solution
  • It enable a customer to use their FASTag as payment mode on any of the toll plazas


  • It is a device that employs Radio Frequency Identification (RFID) technology for making to`s directly while the vehicle is in motion.
  • FASTag (RFID Tag) is affixed on the windscreen of the vehicle
  • It enables a customer to make the toll payments directly from the account which is linked to FASTag.
  • 1st used as a pilot project in 2014 on the Golden Quadrilateral between Ahmadabad and Mumbai.

Aadhaar Enabled Payment System (AePS)

  • AePS is a bank led model which allows online interoperable financial inclusion transaction at PoS (Micro-ATM) through the Business correspondent
  • AePS allows you to do six types of transactions.
    1. Cash Withdrawal
    2. Cash Deposit
    3. Balance Inquiry
    4. Aadhaar to Aadhaar Fund Transfer
    5. Mini Statement
    6. Best Finger Detection

National Automated Clearing House (NACH)

  • It is a centralized system, consolidate multiple ECS systems running across the country
  • It use as an automated monthly payments system
  • NACH’s Aadhaar Payment Bridge (APB) System helping the Government in making the Direct Benefit Transfer scheme a success.

National Financial Switch (NFS)

  • It maintain high standards of application and network for ATM in India
  • It allows Cash Withdrawal, Balance Inquiry, PIN Change and Mini Statement, Interoperable Cash Deposit, Mobile Banking Registration, Card-to-Card Fund Transfer etc.

Cheque Truncation System (CTS)

  • Extended cut off time for acceptance of Customer Cheques by banks
  • Easy retrieval of information
  • Reduced timelines for clearing

Unified Payments Interface (UPI)

  • UPI is a system that powers multiple bank accounts into a single mobile application
  • It is merging several banking features, seamless fund routing & merchant payments into one hood.
  • UPI enables “Peer to Peer” collection or sending money
  • It was launched on 11th April 2016
  • Immediate money transfer through mobile device round the clock 24*7 and 365 days.
  • only fixed and savings account could be linked
  • Upper limit per UPI transaction is Rs.1 Lac.
  • UPI, built on IMPS
  • There is no need to per-load money in wallets


  • Customers can now link their overdraft (OD) account
  • Invoice to Inbox feature for verified merchants
  • Check the merchant’s credentials using a QR code
  • One Time Mandate feature, which allows users to schedule a payment

Bharat Interface for Money (BHIM)

  • BHIM is an app that lets you make simple, easy and quick payment transactions using Unified Payments Interface (UPI).
  • By using BHIM App, we can make instant bank-to-bank payments and Pay and collect money using just Mobile number or Virtual Payment Address (UPI ID).

BHIM Aadhaar Pay 

  • It enables Merchants to receive digital payments from customers over the counter through Aadhaar Authentication.
  • Per transaction limit is Rs.10,000


  • RuPay is a card payment system like Visa or Masters
  • It would lead to lower cost of clearing and settlement for each transaction

RuPay Contact-less

  • Its specifications are open standards, interoperable and can be adopted by all card schemes.
  • To provide a mechanism for including Low Value Payments (LVPs)
  • This card can be used for transit payments (Bus, Metro, Cab etc.), toll, parking, small value offline retail payments as well as normal day to day retail payments.
  • Target of Government of India for implementation of National Common Mobility Card (NCMC) program across the country with the vision of ‘One Card for all Payments

Bharat QR

  • It is Person to Merchant (P2M) Mobile payment solution.
  • User can scan these QR via BQR enabled mobile banking app and pay using Card linked account / VPA / IFSC + Account / Aadhaar.


  • Its a USSD based mobile banking service of NPCI was initially launched in November 2012.
  • The service had limited reach and only two TSPs were offering this service MTNL & BSNL.