Why this matters now
NPCI is tested for: RBI’s 2007 Payment and Settlement Systems Act + 2008 NPCI formation under Section 25 (now Section 8) of Companies Act; 10 promoter banks initially (later 56 shareholders); UPI launch 11 April 2016 by Raghuram Rajan; RuPay 2012; IMPS 2010; BHIM 30 Dec 2016; UPI international (Bhutan, Nepal, France, Mauritius, UAE, Singapore, Sri Lanka, PhonePe); NPCI International Payments Ltd (NIPL); recent FY25: UPI processes 16+ billion transactions/month Rs 23 lakh crore monthly.
History
- 2007: Payment and Settlement Systems Act enabled RBI to set up clearing houses.
- December 2008: NPCI incorporated as Section 25 (now Section 8) not-for-profit company; 10 promoter banks (SBI, HDFC, ICICI, Citi, HSBC, BoB, Canara, BoI, PNB, Union Bank).
- 2010: IMPS (Immediate Payment Service) launched.
- 2012: RuPay card payment scheme launched.
- 2013: NACH (National Automated Clearing House).
- 2014: AePS (Aadhaar Enabled Payment System).
- 11 April 2016: UPI launched by Raghuram Rajan; 21 banks live initially.
- 30 Dec 2016: BHIM app launched by PM Modi.
- 2017: BBPS (Bharat Bill Payment System).
- 2018: FASTag (highway tolling).
- 2020: NPCI International Payments Ltd (NIPL) incorporated for cross-border.
- 2021: UPI in Bhutan (with RMA Bhutan).
- 2023-24: UPI in Nepal, Mauritius, Sri Lanka, France, UAE, Singapore.
Major Products
| Product | Launch | Notes |
|---|---|---|
| UPI | 11 April 2016 | Real-time inter-bank payment via mobile (VPA). FY25: 16+ bn txns/month, Rs 23 lakh cr/month. |
| RuPay | March 2012 | Domestic card scheme alternative to Visa/MC. ~70 cr cards. |
| IMPS | 2010 | 24x7 inter-bank funds transfer; pioneer in instant. |
| AePS | 2014 | Aadhaar biometric payment for banking correspondents; rural last-mile. |
| BBPS | 2017 | Bharat Bill Payment System — bill aggregation. |
| NACH | 2013 | Bulk transactions (salaries, EMIs, dividends, subsidies). |
| FASTag | 2018 | RFID highway tolling; mandatory since 16 Feb 2021. |
| NETC | 2016 | National Electronic Toll Collection. |
| BHIM | 30 Dec 2016 | BHIM UPI app; pre-installed government variant. |
NIPL + International
NPCI International Payments Ltd (NIPL) incorporated 2020 to take UPI + RuPay global. UPI live in:
- Bhutan 2021 (with Royal Monetary Authority Bhutan).
- Nepal 2024.
- Sri Lanka 2024 (PhonePe + LankaQR).
- Mauritius 2024 (Modi-Jugnauth July 2024).
- France 2024 (Eiffel Tower acceptance Feb 2024).
- UAE 2024 (Modi state visit Jan 2024).
- Singapore 2023 (PayNow-UPI linkage 21 Feb 2023).
RuPay credit cards now linkable to UPI (since Sept 2022) — world’s first credit-card-on-UPI integration.
UPSC angle
Know NPCI — National Payments Corporation of India; RBI initiative under Payment and Settlement Systems Act 2007; INCORPORATED December 2008 as SECTION 25 (now Sec 8) NOT-FOR-PROFIT COMPANY; 10 PROMOTER BANKS initially (SBI+HDFC+ICICI+Citi+HSBC+BoB+Canara+BoI+PNB+Union); HQ MUMBAI; MD+CEO DILIP ASBE since Jan 2018; PRODUCTS: UPI launched 11 APRIL 2016 by Raghuram Rajan 21 banks (FY25 16+ BILLION transactions/month Rs 23 lakh cr/month), RuPay March 2012 (~70 cr cards), IMPS 2010, NACH 2013, AePS 2014 (Aadhaar biometric for banking correspondents rural last-mile), BHIM 30 Dec 2016 PM Modi, BBPS Bharat Bill Payment System 2017, FASTag 2018 mandatory 16 Feb 2021, NETC National Electronic Toll Collection 2016; RUPAY CREDIT CARDS linkable UPI since Sept 2022 WORLD’S FIRST; NPCI INTERNATIONAL PAYMENTS LTD (NIPL) 2020 cross-border; UPI INTERNATIONAL: Bhutan 2021 (RMA), Nepal 2024, Sri Lanka 2024 PhonePe+LankaQR, MAURITIUS July 2024 Modi-Jugnauth, FRANCE 2024 Eiffel Feb, UAE Jan 2024 state visit, SINGAPORE 21 FEB 2023 PayNow-UPI linkage.
Frequently asked questions
What is NPCI’s legal form?
A Section 8 not-for-profit company under the Companies Act 2013 (originally incorporated under Section 25 of the Companies Act 1956). Incorporated December 2008.
When was UPI launched?
On 11 April 2016 by RBI Governor Raghuram Rajan. Initially 21 member banks. As of FY25 processes 16+ billion transactions per month with Rs 23 lakh crore monthly value.
Where is UPI live internationally?
Bhutan (2021), Singapore (2023), Sri Lanka, Nepal, Mauritius, France, UAE (all 2024). NPCI International Payments Ltd (NIPL) drives global rollout.
Who is the NPCI CEO?
Dilip Asbe — MD & CEO since January 2018.