National
Payments Corporation of India (NPCI)
·
An
introduction to NPCI
·
Its various
products
I.
UPI
a)
Introduction
b)
How it is
Unique
c)
Benefits to
the Ecosystem participants
Benefits for banks
Benefits for end customers
Benefits for merchants
II.
Rupay
III.
IMPS
Background
Objectives of IM{S
IV.
NACH
V.
ABPS
VI.
AePS
Background
Objectives
VII.
NFS
Background
Features
VIII.
Bharat Bill
Payment System
IX.
NETC
Introduction
·
National Payments Corporation of India (NPCI), an
umbrella organisation for operating retail payments and settlement systems in
India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’
Association (IBA) under the provisions of the Payment and Settlement Systems
Act, 2007, for creating a robust Payment & Settlement Infrastructure in
India.
·
Considering the utility nature of the objects of
NPCI, it has been incorporated as a “Not for Profit” Company under the
provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act
2013),
·
with an intention to provide infrastructure to the
entire Banking system in India for physical as well as electronic payment and
settlement systems.
·
The Company is focused on bringing innovations in the
retail payment systems through the use of technology for achieving greater
efficiency in operations and widening the reach of payment systems.
Various Products
of NPCI
UPI
Introduction
·
Unified Payments Interface (UPI) has been
termed as the revolutionary product in the payment system.
·
Unified Payments Interface (UPI) is a system
that powers multiple bank accounts into a single mobile application (of any
participating bank), merging several banking features, seamless fund routing
& merchant payments into one hood.
·
It also caters to the “Peer to Peer” collect
request which can be scheduled and paid as per requirement and convenience.
How is it unique?
· Immediate
money transfer through mobile device round the clock 24*7 and 365 days.
· Single
mobile application for accessing different bank accounts.
· Single Click
2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides
for a very strong feature of seamless single click payment.
· Virtual
address of the customer for Pull & Push provides for incremental security
with the customer not required to enter the details such as Card no, Account
number; IFSC etc.
· Bill Sharing
with friends.
· Best answer
to Cash on Delivery hassle, running to an ATM or rendering exact amount.
· Merchant
Payment with Single Application or In-App Payments.
· Utility Bill
Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
· Donations,
Collections, Disbursements Scalable.
· Raising
Complaint from Mobile App directly.
UPI - Benefits to the Ecosystem participants
Benefits
for banks:
·
Single click Two Factor authentication
·
Universal Application for transaction
·
Leveraging existing infrastructure
·
Safer, Secured and Innovative
·
Payment basis Single/ Unique Identifier
·
Enable seamless merchant transactions
Benefits
for end Customers:
·
Round the clock availability
·
Single Application for accessing different bank
accounts
·
Use of Virtual ID is more secure, no credential
sharing
·
Single click authentication
·
Raise Complaint from Mobile App directly
Benefits
for Merchants:
·
Seamless fund collection from customers - single
identifiers
·
No risk of storing customer’s virtual address like in
Cards
·
Tap customers not having credit/debit cards
·
Suitable for e-Com & m-Com transaction
·
Resolves the COD collection problem
·
Single click 2FA facility to the customer - seamless
Pull
·
In-App Payments (IAP)
RuPay
· The name, derived from the words ‘Rupee and ‘Payment’,
emphasizes that it is India’s very own initiative for Card payments. It is our
answer to international payment networks, expressing pride over our
nationality.
· RuPay is an Indigenously developed Payment System –
designed to meet the expectation and needs of the Indian consumer, banks and
merchant eco-system.
· RuPay supports the issuance of debit, credit and prepaid
cards by banks in India and thereby supporting the growth of retail electronic
payments in India.
· RuPay is well poised to explore innovative payment
opportunities such as Contactless – offline and online to drive adoption of low
value payments.
· All RuPay Cards will now have the functionality of NCMC
(National Common Mobility Card) which can enable low value contactless payments
(like transit, toll, parking, retail) using Offline technology.
· RuPay is the first-of-its-kind domestic Card payment
network of India, with wide acceptance at ATMs, POS devices and e-commerce
websites across India.
· It is a highly secure network that protects against
anti-phishing.
· RuPay fulfils RBI’s vision of initiating a ‘less cash’
economy. This could be achieved only by encouraging every Indian bank and
financial institution to become tech-savvy and engage in offering electronic
payments.
IMPS
Background
·
For transferring funds real time and 24X7X365 interbank
was a major challenge faced in banking industry. Only NEFT &
RTGS were available to user for fund transfer during banking hours.
·
IMPS provides robust & real time fund transfer which
offers an instant, 24X7, interbank electronic fund transfer service that could
be accessed on multiple channels like Mobile, Internet, ATM, SMS. IMPS is an
emphatic service which allow transferring of funds instantly within banks
across India which is not only safe but also economical.
·
With Immediate Payment Service (IMPS), India has become
the leading country in the world in real time payments in retail sector.
Objectives of IMPS
·
To enable bank customers to use mobile instruments as a
channel for accessing their banks accounts and remit funds
·
Making payment simpler just with the mobile number of the
beneficiary
·
To sub-serve the goal of Reserve Bank of India (RBI) in
electronification of retail payments
·
To facilitate mobile payment systems already introduced
in India with the Reserve Bank of India Mobile Payment Guidelines 2008 to be
inter-operable across banks and mobile operators in a safe and secured manner
·
To build the foundation for a full range of mobile based
Banking services.
NACH
·
National Automated Clearing House (NACH), an offline web
based system for bulk push and pull transactions.
·
NACH provides electronic mandate platform to register
mandates facilitating paper less collection process for the corporates and
banks.
·
It provides for both account based and Aadhaar based
transactions.
ABPS
Aadhaar Payment Bridge (APB) System is helping the
Government and Government agencies in making the Direct Benefit Transfers for
various Central as well as State sponsored schemes.
AePS
To access these funds at door step & drive the
financial inclusion in India, Aadhaar enabled Payment System (AePS) has been
introduced.
Since inception it has become instrumental to increase
accessibility of basic banking services in underserved areas.
To extend the convenience
of biometric to merchant payments, BHIM Aadhaar has been launched .
Background
·
In order to further speed track Financial Inclusion in
the country, Two Working Groups were constituted by RBI on MicroATM standards
and Central Infrastructure & Connectivity for Aadhaar based financial
inclusion transactions with members representing RBI, Unique Identification Authority
of India, NPCI, Institute for Development and Research in Banking Technology
and some special invitees representing banks and research institutions.
·
The working group on MicroATM standards & Central
Infrastructure & Connectivity has submitted its report to RBI. As a part of
the working group it was proposed to conduct a Lab level Proof of concept
(PoC), integrating the authentication & encryption standards of UIDAI, to
test the efficacy of MicroATM standards and transactions using Aadhaar before
they are put to actual use. The PoC was successfully demonstrated at various
venues.
·
AePS is a bank led model which allows online
interoperable financial inclusion transaction at PoS (MicroATM) through the
Business correspondent of any bank using the Aadhaar authentication.AePS allows
you to do six types of transactions.
·
The only inputs required for a customer to do a
transaction under this scenario are:-
a.
Bank Name
b.
Aadhaar Number
c.
Fingerprint captured during enrollment.
Objectives
·
To empower a bank customer to use Aadhaar as his/her
identity to access his/ her respective Aadhaar enabled bank account and perform
basic banking transactions like cash deposit, cash withdrawal, Intrabank or
interbank fund transfer, balance enquiry and obtain a mini statement through a
Business Correspondent
·
To sub-serve the goal of Government of India (GoI) and
Reserve Bank of India (RBI) in furthering Financial Inclusion.
·
To sub-serve the goal of RBI in electronification of
retail payments.
·
To enable banks to route the Aadhaar initiated interbank
transactions through a central switching and clearing agency.
·
To facilitate disbursements of Government entitlements
like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any
Central or State Government bodies, using Aadhaar and authentication thereof as
supported by UIDAI.
·
To facilitate inter-operability across banks in a safe
and secured manner.
·
To build the foundation for a full range of Aadhaar
enabled Banking services.
NFS
Meaning
National Financial Switch (NFS) is the largest network of
shared Automated Teller Machines (ATMs) in India facilitating interoperable
cash withdrawal, card to card funds transfer and interoperable cash deposit
transactions among other value added services in the country.
Salient
Features
·
NFS has introduced sub-membership model which enables
smaller, regional banks including RRBs and local co-operative banks to
participate in the ATM network.
·
NFS has maintained high standards of application and
network uptime of above 99.50% which has helped our member banks ensure
enhanced customer experience.
·
The Dispute Management System (DMS), has benefitted
members with high operational efficiency and ease of online transaction life
cycle management (chargeback, representment, etc.) in the network apart from
being compliant with local regulatory requirements.
·
NPCI has also tied up with International card schemes
like Discover Financial Service (DFS), Japan Credit Bureau (JCB) and China
UnionPay International (CUPI) which allows their cardholders to use ATMs
connected to NFS network.
·
The Fraud Risk Management (FRM) solution is offered as a
value added service to monitor transactions (in real time) and to generate
alert or decline the transaction in the NFS network
Bharat Bill Payment
System
Bharat Bill Payment System is offering one-stop bill
payment solution for all recurring payments with 200+ Billers in the categories
Viz. Electricity, Gas, Water, Telecom, DTH, Loan Repayments, Insurance, FASTag
Recharge, Cable etc. across India.
NETC
National Payments Corporation of India (NPCI) has
developed the National Electronic Toll Collection (NETC) program to meet the
electronic tolling requirements of the Indian market.
It provides an electronic payment facility to customer to
make the payments at national, state and city toll plazas by identifying the
vehicle uniquely through a FASTag.
FASTag are Radio-Frequency Identification (RFID) stickers
which are affixed on the vehicle windshield and enable the driver to make toll
payments electronically while the vehicle is in motion without stopping at the
Toll plazas by saving Fuel and Time.
With these products the aim is to transform India into a
‘less-cash’ society by touching every Indian with one or other payment
services. With each passing year we are moving towards our vision to be the
best payments network globally.
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