December 8, 2023

Day-20 Answer Writing Challenge : Model Answer

Question: Briefly explain about the National Payments Corporation of India and the Unified Payments Interface. (8 marks, 120 words)



  • National Payments Corporation of India (NPCI), is an umbrella organisation for operating retail payments and settlement systems in India.
  • It is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) for creating a robust Payment & Settlement Infrastructure in India.
  • NPCI is a “Not for Profit” Company under the provisions of the Companies Act 1956 (now Section 8 of Companies Act 2013).


  • NPCI was established with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.
  • The Company is focused on bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of payment systems.

Unified Payments Interface (UPI):

  • UPI is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
  • It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.
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