NPCI was promoted by the Reserve Bank of India along with which other body?
- A.Securities and Exchange Board of India
- B.Indian Banks Association
- C.NITI Aayog
- D.Ministry of Electronics and Information Technology
Correct answer
Explanation
The correct answer is B, the Indian Banks Association. NPCI was set up on the initiative of the Reserve Bank of India together with the Indian Banks Association, and ten core promoter banks held its first shareholding, which is why it is owned by the banking industry rather than by the government. Option A is wrong because SEBI regulates the securities market and has no role in retail payment systems. Option C is wrong because NITI Aayog is a policy think tank created in 2015, seven years after NPCI came into being. Option D is wrong because the ministry for electronics and information technology promotes digital services and runs schemes such as Digital India, but it did not promote NPCI. Remember the pair as the central bank plus the bankers association.
Read the full article: NPCI, UPI and RuPay: Retail Payment Systems of India
Practice Questions
View allThe National Payments Corporation of India was incorporated in which year?
- A.2005
- B.2008
- C.2012
- D.2016
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NPCI was incorporated in 2008 as a not for profit company under Section 25 of the Companies Act, 1956 to act as the umbrella organisation for all retail payment systems in India, and it began by taking over the National Financial Switch the following year.
Read the full explanation →The Unified Payments Interface was launched in which year?
- A.2010
- B.2012
- C.2016
- D.2019
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UPI was launched by NPCI in 2016, and the BHIM application followed in December of the same year, which is why 2016 is the single most asked year in this topic.
Read the full explanation →UPI was built as a layer on top of which existing payment system?
- A.RTGS
- B.NEFT
- C.IMPS
- D.NACH
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The Immediate Payment Service, launched in 2010, already moved money between banks instantly at every hour, and UPI uses that rail while adding the virtual payment address, interoperable applications and single click authentication.
Read the full explanation →In UPI, a virtual payment address is used so that the payer does not have to share which details?
- A.The bank account number and IFSC
- B.The Aadhaar number
- C.The PAN
- D.The mobile handset number
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A virtual payment address takes the form of a name followed by a bank handle and acts as a pointer to the underlying account, so a payment can be made or collected without revealing the account number or the branch code.
Read the full explanation →RuPay is best described as:
- A.A mobile wallet run by the Reserve Bank
- B.India's domestic card payment network
- C.A digital currency issued by the RBI
- D.An international remittance service
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RuPay was launched by NPCI in 2012 so that debit and credit card transactions between Indian cardholders and Indian merchants are authorised and settled within the country instead of being switched abroad, and its name joins Rupee with Payment.
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