How many core promoter banks initially formed the consortium to establish the National Payments Corporation of India (NPC

Solution

The National Payments Corporation of India (NPCI) was initially formed by a consortium of 10 core promoter banks. Details- • Core Promoter Banks: 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., HSBC. • Incorporation and Purpose: Established under RBI and IBA’s guidance, NPCI is a "Not for Profit" entity incorporated to develop and support India’s payment infrastructure. • Legal Foundation: Operates under the Payment and Settlement Systems Act, 2007, enabling it to manage and oversee retail payment systems. • Expansion of Shareholding: o In 2016, NPCI broadened its shareholder base to 56 banks, including all banking sectors. o In 2020, it included additional RBI-regulated entities like Payment Service Operators, payment banks, and Small Finance Banks. • Headquarters and Governance: Headquartered in Mumbai, NPCI’s board includes RBI nominees and representatives from core promoter banks. • Key Payment Systems Operated by NPCI: o National Financial Switch (NFS): Facilitates ATM interbank transactions. o Immediate Payment Service (IMPS): Real-time, 24/7 money transfer. o Aadhaar-enabled Payment System (AEPS): Enables Aadhaar-based transactions. o National Automated Clearing House (NACH): Supports bulk payments like subsidies and salaries. • Innovation and Digital Payment Reach: NPCI drives digital payment solutions in India, leveraging technology for efficient and secure transactions.