Nowadays, we use UPI for every small and big payment, but have you ever wondered what power works behind it? National Payments Corporation of India enters here. So let us understand in detail what is NPCI and its functions and how it has changed the digital payment landscape of India forever.
In simple words, NPCI is an umbrella organization that manages all retail payments and settlement systems in India. It was established in 2008 by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). Its primary objective was to create a robust, secure, and efficient payments system in India.
What is NPCI?
Just imagine how difficult it was to transfer funds even 10 years ago. It required going to the bank, filling out forms, and waiting for hours. But today, you can send money to anyone with the flick of an eye using your phone. Much of the credit for this change goes to NPCI.
Initially, NPCI launched products like the National Financial Switch (NFS) and Immediate Payment Service (IMPS). NFS connected all ATMs in the country into a single network, allowing you to withdraw money from any bank ATM. At the same time, IMPS introduced the facility of 24×7 real-time fund transfer, which was a revolutionary step at that time.
NPCI Full Form
The full form of NPCI is National Payments Corporation of India. The NPCI is a non-government company responsible for creating and managing robust payments and settlement systems in India.
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Unified Payments Interface (UPI)
UPI has virtually transformed the way we make payments. It’s a real-time payment system that allows instant fund transfers through a mobile app. By simply scanning a VPA (Virtual Payment Address) or QR code, you can make a payment in seconds. By October 2025, UPI is expected to become the country’s most popular digital payment method.
RuPay Card
RuPay is India’s domestic card scheme, generally an alternative to Visa and Mastercard. RuPay debit cards were issued to millions of accounts opened under the Jan Dhan Yojana. Its transaction charges are lower than those of other international cards.
Bharat Bill Payment System
BBPS is a one-stop platform where you can pay all your utility bills, including electricity, water, gas, DTH recharge, and mobile bills. This eliminates the hassle of visiting different billers’ websites.
Immediate Payment Service (IMPS)
IMPS is an instant fund transfer service available 24×7. It allows you to send money at any time, even on holidays or at night. It can be used through both mobile banking and internet banking.
NPCI is no longer limited to India. Products like UPI and RuPay are now being taken internationally. Countries like France, UAE, Singapore, and Bhutan have begun adopting UPI, which is a major achievement for India. In the future, NPCI is focused on making cross-border payments easier and working on new technologies like blockchain.
