Why in the News
The National Payments Corporation of India (NPCI) group is moving beyond its core payments mandate into artificial intelligence (AI), blockchain and digital financial infrastructure. NPCI has set up a wholly owned subsidiary, NPCI Tech Solutions Ltd. (NTSL), to build these capabilities.
What is NTSL, and who leads it?
- Technology arm: NTSL is the technology and innovation arm of the NPCI Group.
- Leadership: Vishal Kanvaty is NTSL’s managing director (MD) and chief executive officer (CEO). He has been with NPCI for nearly a decade, leading market innovation platforms now among NTSL’s focus areas.
Why has NPCI set it up?
- Rationale: NPCI’s stated reason is that advances in AI and other emerging technologies are creating new possibilities across digital infrastructure and financial services.
- Wider capabilities: NTSL will build capabilities across emerging technology domains and support the expansion of the group’s technology initiatives.
What will NTSL do?
- Global Capability Centre services: NTSL will offer Global Capability Centre (GCC) services, meaning dedicated technology and operations centres that serve a parent group or client.
- Public platforms: It will provide technology for eKYC Setu (electronic know-your-customer checks) and the Unified Ticketing Platform (UTP), and support other Digital Public Infrastructure (DPI) programmes, the shared digital systems on which others build services.
Conclusion
NPCI now has a dedicated vehicle for technology work beyond running payment systems. The DPI programmes and GCC clients NTSL takes on will show how far the payments operator extends into wider digital infrastructure.
Back2Basics: National Payments Corporation of India (NPCI)
- What it is: The umbrella organisation for retail payments and settlement systems in India, set up in 2008.
- Promoters and status: Promoted by the Reserve Bank of India (RBI) and the Indian Banks’ Association, it is a not-for-profit company under Section 8 of the Companies Act, 2013.
- Legal basis: It operates under the Payment and Settlement Systems Act, 2007.
- Systems run: The Unified Payments Interface (UPI), RuPay, the Immediate Payment Service (IMPS), the Bharat Bill Payment System and FASTag.
Matching Previous Year Question
“[2017] Consider the following statements: 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NCPI has launched RuPay, a card Payment scheme. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 ANSWER: (c)”
