Question

UPSC Prelims 2017 Question:

Consider the following statements

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

Which of the statements given above is/are correct?

  1. 1. 1 only
  2. 2. 2 only
  3. 3. Both 1 and 2
  4. 4. Neither 1 nor 2

Answer (Detailed Solution Below)

Option 3: Both 1 and 2

Detailed Solution

Explanation: 

  • National Payments Corporation of India (NPCI), an umbrella organization for operating retail payments and settlement systems in India, is an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India. NPCI is focused on bringing innovations in the retail payment systems through the use of technology (e.g. UPI, BHIM app, Rupay card etc) for achieving greater efficiency in operations and widening the reach of payment systems. Thus, helping in promoting financial inclusion in the country. So, statement 1 is correct.

  • RuPay is an indigenously developed Payment System by the NPCI designed to meet the expectation and needs of the Indian consumer, banks and merchant ecosystem. RuPay supports the issuance of debit, credit and prepaid cards by banks in India and thereby supporting the growth of retail electronic payments in India. So, statement 2 is correct.

Therefore, option (3) is the correct answer.

Subject: Economics | Money and Banking

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