NPCI
- ECONOMY
News:
NPCI To Approve Paytm
Request for Third-Party Application License This Week
What's
in the news?
●
The National Payments Corp of India (NPCI)
is expected to grant a third-party application provider (TPAP) license to
Paytm, officially recognized as One 97 Communications, by March 15.
Key
takeaways:
●
This license will enable users to continue
utilizing the Paytm app for transactions via the unified payment interface
(UPI) despite the impending halt in operations of its banking division, Paytm
Payments Bank, by the same date due to regulatory concerns over non-compliance.
NPCI:
Formation:
●
The National Payments Corporation of India
(NPCI) was incorporated in 2008 as a “Not
for Profit” company under the Companies Act 1956 (now Section 8 of the
Companies Act 2013).
Initiative:
●
NPCI is an initiative of the RBI and IBA, established under the
provisions of the Payment and Settlement
Systems Act, 2007.
Aim:
●
To create infrastructure for the entire
banking system in India, covering both
physical and electronic payment and settlement systems.
NPCI’s
Services:
1.
IMPS (Immediate Payment Service):
●
Real-time interbank electronic funds
transfer service.
●
Enables instant money transfer through
mobile phones.
2.
NFS (National Financial Switch):
●
Network that connects multiple banks,
allowing seamless electronic funds transfer.
●
Facilitates ATM transactions and POS
(Point of Sale) transactions.
3.
BHIM (Bharat Interface for Money):
●
UPI-based digital payment app.
●
Allows users to make quick, secure, and
cashless transactions.
4.
BBPS (Bharat Bill Payment System):
●
Centralized payment platform for various
bill payments.
●
Enables consumers to pay bills seamlessly
through a single platform.
5.
NACH (National Automated Clearing House):
●
Facilitates bulk electronic transactions
like salary payments, dividends, etc.
●
Provides a secure and efficient way for
repetitive payments.
6.
AePS (Aadhaar Enabled Payment System):
●
Allows Aadhaar-linked bank account holders
to make financial transactions.
●
Provides basic banking services through
Aadhaar authentication.
Recognition
of Flagship Products:
●
UPI (Unified Payments Interface) and RuPay
card network.
Homegrown
Services: IMPS, NFS, BHIM, BBPS, NACH, AePS.
Global
Acceptance and Market Share:
●
NPCI aims for global acceptance,
especially for UPI and RuPay.
●
Calls for private players’ entry to build
global scale and competitiveness.
●
Plans for RuPay to gain market share in
credit cards and achieve significant transactions.