Question 1

Which organization serves as the umbrella entity for operating retail payments and settlement systems in India?

Accepted Answer

National Payments Corporation of India. National Payments Corporation of India (NPCI) is the primary organization for retail payments in India. It was established as a joint initiative of the RBI and the Indian Banks' Association. It operates various systems like UPI, IMPS, and RuPay.

Question 2

What does the abbreviation UPI stand for in the context of NPCI products?

Accepted Answer

Unified Payments Interface. UPI stands for Unified Payments Interface, which allows multiple bank accounts to be used via a single mobile application. It enables instant fund transfers between two bank accounts on a mobile platform. This product has significantly revolutionized digital transactions in the country.

Question 3

Which product of NPCI is a domestic card scheme designed to compete with international networks like Visa and Mastercard?

Accepted Answer

RuPay. RuPay is India's indigenous global card scheme launched by NPCI in 2012. It was created to fulfill the RBI's vision of having a domestic, open-loop, and multilateral system of payments. RuPay is now widely accepted at ATMs, POS devices, and e-commerce websites.

Question 4

What is the primary function of the 'Immediate Payment Service' (IMPS) launched in 2010?

Accepted Answer

24/7 instant interbank electronic fund transfer. IMPS provides an instant 24/7 interbank electronic fund transfer service through mobile phones. It allows customers to use mobile, internet, and ATM channels for immediate money transfers. It was one of the earliest real-time payment systems managed by NPCI.

Question 5

Which NPCI product provides a centralized system for bulk, repetitive, and periodic interbank transactions?

Accepted Answer

NACH. NACH stands for National Automated Clearing House, which facilitates high-volume electronic transactions. It is used by institutions for distributing salaries, pensions, and dividends. It also helps in the collection of recurring payments like EMIs and utility bills.

NPCI Products — Set 1