Economics • Banking & FinanceMedium
What is the primary function of the 'National Payments Corporation of India' in the country's financial architecture?
A. Formulating monetary policy and setting the repo rate
B. Operating and managing retail payment and settlement systems across the nation✓ Correct Answer
C. Regulating non-banking financial companies and housing finance corporations
D. Supervening foreign portfolio investments in domestic equity markets
💡 Solution & Explanation
The National Payments Corporation of India is an umbrella organization established by the Reserve Bank of India and the Indian Banks' Association to operate retail payment and settlement infrastructure like UPI, IMPS, and RuPay. Monetary policy formulation remains strictly under the purview of the RBI Monetary Policy Committee. Non-banking financial companies are directly regulated by the central bank department of supervision. Capital market surveillance is managed by the Securities and Exchange Board of India.
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