NPCI and its products – Helping India with Digital Payments

With demonetization lot of things came to the fore. India though rapidly developing has a long way to go in the digital realm. Considering the width and breadth of our country a digital revolution is required to change everyone’s way of day-to-day life and one of the crucial aspect of that is how we adapt to digital payments. India needs to be a less-cash country to curb corruption and cash dependency.

One such company founded by Reserve Bank of India and Indian Banks’ Association to create a robust Payment and Settlement Infrastructure in India is National Payments Corporation of India (NPCI). It’s a ‘not for profit’ company focused on bringing technological and system innovations in the retail payment systems for achieving greater efficiency in operations and widening the reach of payment systems.

NPCI has founded many products to help India’s payment systems. Its noteworthy products are IMPS, NFS (National Finance Switch), Cheque Truncation System and Aadhaar enabled payment system. RuPay is another offering from NPCI to fulfil the vision of offering a domestic, open-loop, multilateral payment system to all banks and financial institutions in India.

RuPay – Key Highlights:

  • Standardized card scheme for all banks in India
  • 380+ Mn Rupay cards issued by 800+ participating banks
  • Settlement in RBI accounts – no need for hedging Forex risks
  • Common network, switching & interchange fees across all banks
  • Switching Fees almost one-third that of International Card Schemes (ICS)
  • All regional rural banks & major state Co Op banks are offering RuPay cards

RuPay supports issuance of cards (Debit, Credit and Prepaid) by banks in India thereby contributing to the growth of retail electronic payments in India. It enables a larger segment of the banking customers including that of Regional Rural Banks (RRB) and Co-operative Banks to participate in electronic payments thus reaching the far corners of India. It offers payment options across channels i.e. ATM / POS / e-commerce as well as Aadhaar based transactions at micro ATMs.

RuPay offers same pricing across banks and sectors which is simple, transparent and highly competitive. For customers to have a seamless experience while doing international transactions, RuPay has a strategic tie-up with Discover Financial Services and Japan Credit Bureau to offer international acceptance across the globe.

The next important product from the NPCI is my favourite Unified Payments Interface (UPI). This has the power, potential and performance to make money transfers as easy as sending a text message in real-time. Over 250 merchants comprising of Billers, Insurance companies, Lifestyle & Shopping, Travel & Entertainment, Education Institutes, Retail etc. accept UPI payments from their customers. Bharat Interface for Money (BHIM) is an app which is UPI enabled and helps you to enjoy digital payment solutions straight from your phone.

UPI & BHIM – Key highlights:

  • Go cashless – anywhere, anytime. A simple and secure way to make payments.  
  • 24 x7 Instant money transfer service  
  • Scan and Pay  
  • Collect and receive money from your friends at a single click and that too instantly.  
  • Direct bank account to bank account transfer using UPI ID / Mobile No. / Aadhaar No. / Account No. & IFSC code
  • Generate and share your personalised QR code
  • Instant notifications – Get instant transaction alerts for every transaction on BHIM  
  • Access BHIM App in your favourite language. BHIM is available in English and 13 regional languages
  • Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount
  • Merchant Payment with Single Application or In-App Payments

 

UPI is basically a mechanism that takes care of the multiple level checks required for me to transfer money from my bank account to other bank accounts. All I need is a UPI id and my UPI PIN. It’s so easy and convenient. I don’t need to add beneficiaries to my account before transferring money. I don’t need to add money to a third party wallet before paying my bills. The money is transferred from my bank accounts to various vendors and merchants and people in just a click. If this isn’t the catalyst for a less-cash economy than I don’t know what is.

UPI functionality can be used via BHIM app available on the Google play store or Apple app store which lets you add all your bank accounts in one place and use them whenever you want. The inter-operability of the mechanism and connectivity with various banks since UPI is an RBI regulated entity makes BHIM a very efficient and simple to use app. I can use UPI and BHIM to transfer money to my friends or to pay my bills or to buy things online. I can create a UPI id and can use that to pay money and even to collect money. And that’s not it, one can do UPI transactions even by dialing *99# from his/ her basic phone as well.

I’m using a RuPay card and have not faced any problem, also I love how easy it is to split bills between friends with UPI ids. The products of National Payments Corporation of India is definitely helping India’s digital payment systems and maybe we can contribute to this development by adapting to digital payments to limit our dependability on cash.

Do let me know your experience of using these 2 amazing products or any other products of NCPI in the comments below. Let’s use these products more to enable India to be a less-cash economy.

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One thought on “NPCI and its products – Helping India with Digital Payments

  1. Pingback: NPCI partners with IndiBlogger to help India adopt their latest technologies – IndiBlogger – Product & Community Blog

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