Why in News?
NIPL has added 13 more banks to the UPI-Pay Now real-time payment linkage, enhancing cross-border remittances between India and Singapore. This will go live on July 17, allowing users to remit funds more easily using UPI-enabled apps.
Description:
Established: 2008
Under: Payment and Settlement Systems Act, 2007
By:
- Reserve Bank of India (RBI)
- Indian Banks’ Association (IBA)
Objectives:
- Operate retail payment and settlement systems in India
- Promote a cashless economy
- Enhance financial inclusion
- Offer safe, secure, accessible, and real-time digital transactions
Promoter Banks (10 Core Banks):
SBI, PNB, Canara Bank, BoB, Union Bank, BOI, ICICI, HDFC, Citibank, HSBC
Major Initiatives by NPCI:
| System | Launched | Purpose |
| UPI | 2016 | Real-time interbank P2P and P2M transactions via mobile |
| RuPay | 2012 | India’s domestic card scheme (debit, credit, prepaid) |
| IMPS | 2010 | 24×7 instant interbank fund transfer |
| AePS | — | Aadhaar-based banking via biometric authentication |
| BBPS | — | Integrated utility bill payment platform |
| NFS | — | Interbank ATM switching network |
| NETC/FASTag | — | Electronic toll collection using RFID tags |
Achievements:
- Digital payment volumes (FY 2023-24): ₹18,737 Cr (from ₹2,071 Cr in 2017-18)
- Growth rate: 44% CAGR
- UPI has made India a global leader in digital payments
- Strong focus on security, standardization, and accessibility
Challenges:
- Cybersecurity risks: data breaches, fraud
- Scalability issues: infrastructure upgrades needed
- Digital literacy gap: especially in rural areas
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