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Banking & Financial AwarenessEasyAsked in: RRB Group D · 22 Sept 2018, Shift 3

With reference to retail payments and settlement systems, what is the full form of NPCI?

  1. A.National Payment Consortium of India
  2. B.National Payments Corporation of India
  3. C.National Piracy Council of India
  4. D.National Protection Council India

Correct answer

B. National Payments Corporation of India

Explanation

The correct answer is B, National Payments Corporation of India. NPCI is the umbrella organisation that runs India's retail payment and settlement systems. It was set up in 2008 by the Reserve Bank of India and the Indian Banks' Association under the Payment and Settlement Systems Act, 2007, and works as a not-for-profit company owned by banks, with its head office in Mumbai. UPI, RuPay, IMPS, AePS, BHIM, NACH, the National Electronic Toll Collection behind FASTag and the cheque truncation system are all NPCI platforms, which is why nearly every digital retail payment in the country passes through it. A is wrong because the word in the name is Corporation, not Consortium. C is wrong because a piracy council has nothing to do with payments; it is an invented expansion. D is wrong for the same reason, as no National Protection Council runs payment systems. Exam tip: NPCI - set up in 2008 by RBI and IBA, based in Mumbai, and the operator of UPI, RuPay, IMPS and NACH.

Practice Questions

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Q2.Banking & Financial AwarenessAsked in: CDS · CDS-I 2018, GKHard

Which of the following statements about the India Post Payments Bank (IPPB) is/are correct? 1. It has been incorporated as a Public Limited Company. 2. It started its operation by establishing two pilot branches at Hyderabad and Varanasi. Select the correct answer using the code given below.

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: A. 1 only

IPPB was incorporated as a public limited company, but its two pilot branches opened at Raipur and Ranchi, not at Hyderabad and Varanasi.

Q3.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IEasy

Consider the following statements : 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct ?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: C. Both 1 and 2

The National Payments Corporation of India was set up in 2008 as the umbrella body for retail payments in the country, on the initiative of the Reserve Bank of India and the Indian Banks' Association, under the Payment and Settlement Systems Act, 2007.

Q4.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2026, GS Paper IHard

Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India : 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct ?

  1. A.1 and 4
  2. B.1, 2 and 3
  3. C.4 only
  4. D.2, 3 and 4
Show answer
Correct answer: A. 1 and 4

These are two of the three ways the RBI itself says an NBFC differs from a bank. An NBFC lends and invests like a bank, but it cannot accept demand deposits such as savings or current accounts, so statement 1 is correct.