PAYMENT SYSTEMS - NPCI FOR EVERY INDIAN
“We at have closely aligned ourselves to the mission and vision of the Reserve Bank of India that the Payments and Settlement Systems in the country are safe, efficient, inter-operable, authorised, accessible and compliant with international standards. We aim at reaching out in an inclusive way, such that every Indian uses one or the other payment services of at least once a month, within the next five years.” says AP Hota, Managing Director &
as an organisation was envisaged by in 2005 as the umbrella organisation for all the Retail Payment Systems in the country. By, “umbrella organisation” expected that would build central infrastructure for inter-bank retail payments in the country except the system, which is usually operated by the central bank. With the efforts of Indian Banks Association and support of started operations in January 2010. Since then, the organisation has grown rapidly with four distinct lines of payment services — switching, Mobile Payments, Cheque Truncation System and RuPay domestic card payment network. Three more lines of payment services are under execution — Automated Clearing House Aadhar Enabled Payment System and Touch & Go Contactless Payment System. We aim at digitisation of payments and encourage customers to move away from cash and cheques. switching is the stabilised service of In January 2010, took over this service from (the technology arm of Reserve Bank of India) with 37 member banks and with a daily average transaction of 2 million. Now the number of member banks has crossed 100, with daily average volume of 5.5 million. Nearly 90 percent of all inter-bank transactions (customer of bank-A using the of Bank-B) are routed through Presently, 1,00,000+
are part of network. now touches almost every cardholder/ carded customer in the country with this service. Currently, cheque clearing in India is done in three ways — through Cheque truncation system at New Delhi and Chennai, through automated sorting system (called Clearing ) at 64 major centres and through a manual sorting system in the remaining 1100 locations across the country. plans the whole country to move to Cheque truncation mode by the end of the next year. The task has been entrusted to
Once cheque truncation system is fully implemented, the cheque will not move beyond the branch of first deposit. Clearing will take place on the basis of cheque images. implemented cheque truncation in Chennai and is in the process of rolling it out to all clearing houses in the states of Tamil Nadu, Karnataka, Kerala, Andhra Pradesh and Puducherry by March next year. plans to have clearing houses in the country on a Grid mode at Chennai, Mumbai and Delhi. It would transform the cheque clearing process in the country and would facilitate faster clearing, automated reconciliation and electronic processing of paper based system that can in due course be made fully electronic. With this service,
would be able to reach almost all the bank customers in the country.