Consider the following statements: 1. National Payments Corporation

Consider the following statements:

1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme.

Which of the statements given above is/are correct?

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option3″]

This question was previously asked in

UPSC IAS – 2017

The correct answer is C) Both 1 and 2. Both statements accurately describe aspects related to the National Payments Corporation of India (NPCI).

– Statement 1 is correct. NPCI is an initiative to create robust payment and settlement systems in India, which are foundational for financial inclusion. By developing affordable and accessible payment platforms like UPI, AePS, and RuPay, NPCI facilitates easier access to financial services for a wider population, especially in rural and semi-urban areas.
– Statement 2 is correct. RuPay is a domestic card payment network launched by NPCI. It is an alternative to international card networks like Visa and Mastercard and plays a significant role in promoting cashless transactions and financial inclusion in India.

NPCI was founded in 2008 as a not-for-profit organization under the guidance of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). Its mandate is to provide retail payment infrastructure to the country. Besides RuPay, NPCI operates other major payment systems like Unified Payments Interface (UPI), Immediate Payment Service (IMPS), Aadhaar Enabled Payment System (AePS), Bharat Bill Payment System (BBPS), etc., all of which contribute significantly to the digital transformation of India’s payment landscape and financial inclusion efforts.

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