NPCI FULL FORM

1) NPCI Full Form is NATIONAL PAYMENT CORPORATION OF INDIA.

2) To make retail payments system in India NPCI acts as an umbrella organization.

3) It was started in the year 2008 as a not-for-profit organisation registered under Section 8 of Companies Act 2013. 

4) It is a utility for the banking industry for handling a large volume of small transactions across banks as a clearing house for all banks at the national level.

5) NPCI is promoted by nationalised banks and private sector leading banks.

6) It is an initiative of RBI and Indian Bank's Association 

7) NPCI was incorporated under the provisions of the Payment and Settlement Systems Act 2007.

8) Bringing innovations in the retail payment systems through the use of technology for achieving greater efficiency in operations and widening the reach of the payments system are the main objectives of NPCI.

9) It will also play a key role in India's push towards a cashless economy by changing the way payments are made in India.

10) Within a short span of time NPCI has successfully launched a number of products as under :

a) National Financial Switch ( NFS)

b) Immediate Payment Service (IMPS)

c) Unified Payment Interface ( UPI)

d) National Automated Clearing House ( NACH)

e) RUPAY

f) Aadhar enabled payment services ( AEPS)

g) Bharath Interface for Money ( BHIM)

H) Bharat Bill Pay

i) *99# service

j) Cheque Truncation System ( CTS)

11) National Financial Switch 

NFS is the largest network of shared automated teller machines (ATMs) in India. It was designed, developed and deployed by IDBRT in 2004 with the goal of inter-connecting the ATMs in the country and facilitating convenience banking. Now it is run by NCPI.

12) NFS had 941 members that include 101 Direct member banks and sub-membermber banks and financial institutions and 56 Regional Rural Banks and 8 WLAOs as on August 2017. It connects more than 2.37 Lakh ATMs in its network.
Services offered by NFS

13) Initially, the following basic services were available in the NFS network:
- cash withdrawal
- balance enquiry
-PIN change
- Mini statement
However to enable member banks to offer greater utility to customers many new services such as cash deposit,card to card funds transfer, Cheque book request, FixedDeposi, tax payment, premium payment, Aadhar services, Mobile banking registration, etc have been introduced.

14) Main feature of the service 
- Inter operable
- Instant funds transfer
- 24/7 Availability
- Secure
- Paperless
- Better funds management

15) Immediate Payment Service:
IMPS provireal-timest& realtime funds transfer which offers instant,24/7 , interbank electronic funds transfer service that could be accessed on multiple channels like Mobile, Internet, ATM, SMS, Branch and USSD ( *99#). It was introduced in November 201,0. Currently 243 members are live in IMPS.

16) Participants in IMPS:
- Remitter / sender
- Beneficiary/ Receiver
- Banks
- National Financial Switch- NCPI

17) Funds Transfer/ Remittance:
a) Using mobile number and MMID Account) Using account number and IFS code ( P2A)
c) Using Aadhaar Number ( ABRS)
a) Using Mobile number and MMID:

18) Sender and receiver have to register for mobile banking and get a unique ID called Mobile Money Identifier ( MMID). Remitter tthe transfers funds to beneficiary using mobile number and 7 digit MMID of the beneficiary. Each MMID is linked to a unique mobile account.
b) Using account number and IFS code

19) There may be cases where Remitter is enabled on the mobile banking but beneficiary mobile number is not registered with any bank ac, count. In such cases Remitter is not able to send money using, MMID. In such cases funds transfer can be done using the account number and IFS code .
c) Using Aadhaar Number ( ABRS )

20) In ABRS, a Remitter can initiate IMPS transaction using beneficiary's Aadhaar number which acts as a financial address and which will be linked to the beneficiary's account number. Another important utility of this service will be thepaidsal of subsidy paid by the Government.

21) UPI is a system that facilitates users to access multiple bank accounts with a single mobile application. It combines merchant banks, banking features and seamless fund routing to be accessed from a single place. It was launched on 11th April 2016.

22) Let us understand with an example of Airtel bank UPI app. First of all, you need to download the app. Once you have downloaded the app, you can since your other accounts and enjoy the benefits . There are different options for payment, transferring money, paying bills etc,. Suppose you need to transfer money to some bank account, then you need to enter details of payee such as bank name, IFS code, payee name and account number. Afterwords, you need to select the bank account from all accounts synced with the UPI app to make payment.

23) Advantages of UPI are
a) It is very inexpensive compared to NEFT
b) You can carry all bank accounts in your pocket
c) It is a secure payment option.

24) UPI 2.0 is upgraded version of UPI launched recently. Key features are as under:
a) In addition to Current and Savings accounts, you can link your overdraft account to UPI I
b) UPI mandate can be used for transfer of money at a future date by providing commitment at present.
c)You can check the invoices sent by merchant prior to making payment.
d) Signed intent and Quick Resonse( QR) code to check authenticity of merchants.

25) NATIONAL AUTOMATED CLEARING HOUSE 
It is a web based solution for banks, financial institutions, corporates and Government to facilitate interbank, high volume electronic transactions which are repetitive and periodic in nature.

26) Uses of NACH
It is used for making bulk transactions towards distribution of subsidies, interest, dividends, salary, pension etc,. It is also used for bulk collection of payments pertaining to telephone, electricity, water, loans,investments in mutual funds, insurance premium etc, .

27) Features of NACH 
It has two wings- ECS debit and ECS credit. Similarly local, regional and national ECS are also operational.
NACH is a centralised system with an aim to consolidate multiple ECS running in the country. It covers all core banking enabled ban branches of the country irrespective of the location. Under NACH , the NCPI provides single set of rules common across all the participants, service providers and users.

28) Benefits of NACH
a) It helps member banks to design their own products besides addressing specific needs of banks and corporates.
b) It helps in efficient fund management of institutions and corporates
c) It enables Direct transfer of benefits to citizens by the government.
d) It facilitates customers make payments without any hassles.

29) Aadhar Payment Bridge  is used for channelising Government subsidies and benefits ( DBT) to the intended beneficiaries using the aadhaar numbers. The APB system links the Government departments and their sponsor banks on one side and beneficiary banks and beneficiaries on the other hand.

30) Difference between regular ECS and NACH ?
The local ECS, Regional ECS and National ECS are controlled by RBI or by designated commercial banks, NACH functions are managed by NCPI . The regular ECS mandate activation may require activation time of 15 to 30 days, the NACH mandate requires just 10days for activation. The registration process has not changed. However you have to fill and submit the NACH form instead of the older ECS form to utilise NACH service.

31) RUPAY is an Indian domestic card scheme conceived and launched by NCPI on 12th March 2012.

32)  It is India' s own domestic payment network developed on the lines of international payment networks like Visa, MasterCard, Discover, Diner's Club and American Express.

33) RUPAY is a debit card similar to any other debit cards that you might hold now.You can access them in all ATMs and POS terminals across the country.

34) All major public sector banks including SBI have started issuing these cards to their customers.

35) Benefits of RUPAY card?
a) Lower transaction and processing charges :
Foreign payment processors like Visa or MasterCard currently levy higher transaction processing charges compared to RUPAY. With RUPAY these fees can be as low as 2/3 the fee charged by foreign cards.
b)Fuel surcharge waiver:
Unlike other payment networks, all the variants of the RUPAY platinum cards offer a surcharge waiver of 1% every calendar month, on fuel purchases made at petrol stations in India.
c) Benefits to train travellers :
RUPAY cards offer cashback of offers
d) Insurance benefit :
Accidental insurance benefit covers up to Rs 2 lakhs is available under the card.
e) Utility bills :
RUPAY card provides 5% cashback on utility bills payments made every calendar month.
f) Free access to airport lounges :
Travellers now have free access to lounges in major airports through their RUPAY debit card.

36) RUPAY platinum/ select cards are enabled for international transactions wherever Discover, Diner's Club and JCB are accepted if such arrangements are made by the respective card-issuing banks.
F. Aadhaar enabled Payment Services.

37) AePS is a system developed by NCPI that allows people to carry out financial transactions on a Micro - ATM by furnishing just their Aadhaar number and verifying it with fingerprint/ iris scan.

38)  People can avail a total of 6 facilities through AePS.
- Cash withdrawal
- Cash deposit
- Balance enquiry
- Aadhar to Aadhar funds transfer
- Mini- Statement
- E- KYC- Finger detection/ IRIS detection

39) How to use AePS 
a) Visit a banking correspondent in your area.
b) Enter 12 digit Aadhar number in the POs machine
c) Select transaction type such as cash deposit, withdrawal etc,
d) Select the bank name
e) Enter the amount of transaction
f) Authenticate using your fingerprint/ iris scan
g) The transaction gets completed in seconds and receipt will be given to you by banking correspondent.

40) Benefits of AePS
a) Banking and non -banking transactions can be performed through a bank correspondent
b) People need not give their debit/ credit card for making transactions under AePS.
c) It is safe as a finger print is required for transactions.
d) Micro Pos machines can be taken to remote villages to make transactions instantly.

41)Bharat Interface for Money 
BHIM is a mobile app developed by NCPI based on Unified Payment Interface ( UPI) and it was launched on 30th December 2016.

42) How to register in BHIM app 
1. Download the app from play store
2. The app will prompt you to verify your phone number using SMS. Wait for the completion of the verification process.
3. Once verified, input a four-digit PIN?
4. The app will ask you to select the bank. Once selected the app will capture all details of a bank account. Select the primary bank account that will be used for transactions.

43) How to send money using BHIM
1. Once you open the app, it displays three options- send, request and scan and pays.
2. To send money, type the mobile number and the amount to be sent.
3. The app will prompt you to input MPIN that authenticates the transaction,
Likewise, you can request money from someone using their phone number
4. What is the use of scan and pay?
This option allows users to transfer money using QR code, a two-dimensional black and white barcode which can be decoded by a smartphone or tablet. Each phone number is assigned a QR code which can be accessed under profile on the home screen.
H. Bharat Bill Pay System.

44) BBPS is an integrated bill payment system in India offering interoperable and accessible bill payment services to customers through a network of agents of the registered member as Agent institutions, enabling multiple payment modes and providing instant confirmation of payment.

45) Categories of billers in BBPS
Billers cover utility services such as electricity, gas, telecom, DTH etc.

46) Different payment modes in BBPS 
Customers can make payment through credit/ debit cards, IMPS, UPI, AEPS, Internet banking and wallets.

47) Benefits of using BBPS
a) Bills can be paid anywhere anytime
b) BBPS outlets include banks, ATMs, Business correspondents, kiosks etc, providing multiple access points to customers.
c) Instant receipts for payment
d) Secure and convenient system.

48) *99# is a USSD ( Unstructured Supplementary Service Data) based mobile banking service from NCPI that brings together banks and telecom service providers. Using this service you can access mobile banking services by dialling *99# from your mobile registered with the bank.

49) Main features of this service
- You can use this service without internet
-Works on all GSM providers and mobile handsets
- You can use it any time, anywhere
-No additional charges if you use this while roaming. But Rs 1.50 per session will be deducted for using this service.
- There is no need for any mobile app for this service.

50) Services available here
* Financial services- Funds transfer
* Non -financial services:
- Balance enquiry
- Mini statement
- generate OTP/ MPIN

51) How to use this service
- Dial *99# from your mobile handset.
- You will receive welcome message from NUUP ( National Unified USSD Payments ) Click OK.
- Enter either 3 letters of your bank short name or first 4 letters of IFSC code.
- You can select respective options for Balance Enquiry, Funds transfer etc.

52) How to do funds transfer by dialling *99#
You can transfer funds using three different ways :
- MMID based
-IFS code and bank account mode
-Aadhar number based.

53) Which are the banks offering this service
As many as 51 banks ate offering this service. You can find the list in the website of NCPI. As many as 11 languages can be used for this service.

54) CHEQUE TRUNCATION SYSTEM is image-based clearing system. Instead of physical cheques, images of cheques are transmitted online for clearing purposes. This would eliminate the need to move physical instruments across branches resulting in the reduction of time.

55) Status of CTS in the country 
Under the CTS, entire cheque volume in the country which was earlier cleared through 66 MICR cheque processing locations, is consolidated into three grids in New Delhi, Chennai and Mumbai.

56) Benefits to customers
a) It reduces collection time of cheques
b) It reduces the scope for loss of cheques in transit.
c) Lowers cost of collection of cheques.

57) Images are taken using specific scanners which contain tiny sensors.

58) Banks can provide images of cheques duly certified after getting it from the presenting branch.

59) For CTS purposes cheques are standardised in terms of size, MICR band, quality of paper, etc. This is called the CTS 2010 standard.

60) If any point missed kindly comment we add in this post.
Thank you.