Economics • Banking & FinanceEasy
What is the primary function of the 'National Payments Corporation of India (NPCI)'?
A. To formulate monetary policy guidelines for commercial banks
B. To operate and manage retail payment and settlement systems across the country✓ Correct Answer
C. To provide direct foreign exchange loans to import-export businesses
D. To regulate non-banking financial companies and housing finance institutions
💡 Solution & Explanation
The National Payments Corporation of India operates and manages retail payment and settlement infrastructure across the country, fostering a cashless digital economy. Monetary policy formulation remains the exclusive mandate of the central bank rather than payment umbrella organizations. NPCI was established under the provisions of the Payment and Settlement Systems Act, 2007, as an initiative of the Reserve Bank and the Indian Banks' Association.
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