NPCI
In one line: The National Payments Corporation of India is the umbrella body for retail payments, promoted by the RBI and the Indian Banks' Association.
What it is
NPCI is a not-for-profit company, registered under Section 25 of the Companies Act, 1956, which is now Section 8 of the Companies Act, 2013. It works under the Payment and Settlement Systems Act, 2007. It took over the National Financial Switch for ATMs in December 2009 and later built UPI and RuPay.
What it does
It runs the central switch for UPI and sets the system's rules, including fees and app conduct. It was authorised by the RBI to operate UPI in August 2016.
Why it is in the news
NPCI has defended its 0.4% MDR framework before the Supreme Court and argued that it is not 'State', so writ petitions on fundamental rights cannot be brought against it.
Where to go next
- Article 12 and the meaning of State
- Merchant discount rate
NPCI in the news
- NPCI tells Supreme Court zero-MDR UPI is unsustainable, defends 0.4% merchant fee 6 November 2026
The body that runs UPI.
- Centre and banks to settle UPI subsidy once merchant charges begin 26 September 2026
The not-for-profit that runs UPI
Previous-year questions on this
- 2026 · GS3 · 10 marks Examine the view that financial inclusion is an integral part of social and economic inclusion in a country like India. Also throw light on the usefulness of the R.B.I.'s Financial Inclusion Index.
- 2026 · GS3 · 10 marks What do you mean by Digital Rupee? In this context, explain the working and progress of India's Central Bank Digital Currency (CBDC).
- 2022 · GS3 · 10 marks Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.
- 2016 · GS3 · 12.5 marks Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poor section of the Indian society?…
- 2017 · Prelims Which of the following is the most likely consequence of implementing the 'Unified Payments Interface (UPI)'? (a) Mobile wallets will not be necessary for online payments. (b) Digital currency will…