Which of the following is NOT an objective of NPCI?

Question

Which of the following is NOT an objective of NPCI?

1. A. To provide safe, secure, and efficient retail payment systems in India.
2. B. To regulate the payment and settlement systems in India. (Correct answer)
3. C. To promote digital payments and financial inclusion in the country.
4. D. To provide a range of products and services to banks and financial institutions.

Correct Answer

Option B — To regulate the payment and settlement systems in India.

Detailed Solution & Explanation

The correct answer is To regulate the payment and settlement systems in India..

Key Points

• NPCI (National Payments Corporation of India) operates and facilitates retail payment systems — it does NOT regulate them.
• The regulation of payment and settlement systems in India is the responsibility of the RBI under the Payment and Settlement Systems Act, 2007.

Additional Information

• Regulating payment and settlement systems is the statutory job of the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 — NPCI is an operator, not a regulator.
• NPCI was set up in 2008 as a not-for-profit under Section 8 of the Companies Act, jointly by the RBI and the Indian Banks' Association.
• Products built and run by NPCI: UPI, RuPay, IMPS, NACH, AePS, BHIM, FASTag (NETC) and the Bharat Bill Payment System.