National Payment Corporation Of India

INTRODUCTION

National Payments Corporation of India (NPCI) is a national level payment system which manages all types of electronic retail payments. It is owned by a group of promoter banks and was set up under the guidance and support of the reserve bank of India (RBI) and Indian banks’ association (IBA). The BHIM app, Unified Payments Interface (UPI) which aims at cashless society in the country is the recent work of NPCI. 

OBJECTIVE:

The objective was to integrate the various financial organisations which offer varying services, into a nation-wide uniform and standard business platform for all retail payment systems. It provides unrestricted access to e-payment services. It also facilitates an affordable payment mechanism to benefit the common man across the country and help financial inclusion, direct cash transfer, subsidy allocation etc. 

BACKGROUND:

• After establishing the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) in 2005, RBI proposed to set up an umbrella institution for all the RETAIL PAYMENT SYSTEMS in the country. 
• NPCI was incorporated in December 2008 and the Certificate of Commencement of Business was issued in April 2009 under Section 25 , Companies Act 1956 (now Section 8 of Companies Act 2013) 
• It operates for the benefit of all the member banks and their customers. 
• The authorized capital was Rs 300 crore and paid up capital was Rs 100 crore. 

PROMOTER BANKS OF NPCI:

NPCI has ten promoter banks namely, State Bank of India, Bank of Baroda, Union Bank of India, Canara Bank, Bank of India, Citibank , Punjab National Bank, ICICI Bank, HDFC Bank, and HSBC. 

BOARD OF MEMBERS:

• The Board constitutes of: 
• Shri Balachandran. M as the Chairman, 
• Nominee from RBI, 
• Nominees from ten core promoter banks, 
• Two Independent Directors and 
• Shri A. P. Hota, Managing Director and Chief Executive Officer, NPCI.