Economics • Banking & FinanceEasy
What is the role of the 'National Payments Corporation of India (NPCI)'?
A. It acts as the central monetary authority formulating India's monetary policy.
B. It is an umbrella organization operating retail payments and settlement systems in India, such as UPI, IMPS, and RuPay.✓ Correct Answer
C. It regulates capital markets and mutual funds alongside the stock exchanges.
D. It manages public debt for both central and state governments.
💡 Solution & Explanation
The National Payments Corporation of India functions as an umbrella organization for operating retail payment and settlement systems across the country, having been established by the Reserve Bank of India and the Indian Banks' Association under the Payment and Settlement Systems Act of 2007. Unlike monetary policy formulation, which remains the exclusive mandate of the Reserve Bank, or capital market regulation handled by SEBI, NPCI focuses on building robust digital infrastructure like UPI and RuPay.
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