Context:
NPCI has granted OCL permission to join UPI as a TPAP under the multi-bank model. Four banks – Axis Bank, HDFC Bank, SBI, and YES Bank – will serve as PSP banks to OCL, the parent company of Paytm.
Background: –
- Recently, RBI directed NPCI, which owns and operates the UPI platform, to consider a request by OCL to become a TPAP.
- A Third-Party Application Provider is an entity that provides UPI compliant app(s) to facilitate UPI-based payment transactions. These applications could be mobile wallets, merchant apps, or any other platform that utilises UPI for payments.
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About National Payments Corporation of India (NPCI)
- National Payments Corporation of India (NPCI), is an umbrella organisation for operating retail payments and settlement systems in India.
- It was launched in 2008 by the Reserve Bank of India (RBI) and the Indian Banks Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
- It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956. Now in Section 8 of Companies Act 2013.
- The ten core promoter banks are State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank Limited, HDFC Bank Limited, Citibank N. A. and HSBC.
- In 2016 the shareholding was broad-based to 56 member banks to include more banks representing all sectors. In 2020, new entities regulated by RBI were inducted, consisting of Payment Service Operators, payment banks, Small Finance Banks, etc.
- NPCI offers a range of payment solutions and services, including the Unified Payments Interface (UPI), Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement (RTGS), Bharat Bill Payment System (BBPS), Aadhaar Enabled Payment System (AePS), National Automated Clearing House (NACH), and RuPay, India’s own card payment network.
- The Unified Payments Interface (UPI) is one of NPCI’s most significant initiatives.
- Payment systems that the NPCI operate include National Financial Switch. National Financial Switch (NFS) is the largest network of shared Automated Teller Machines (ATMs). In India facilitating interoperable cash withdrawal, card to card funds transfer and interoperable cash deposit transactions among other value-added services in the country.
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