Question 87 from UPSC CSE 2017 - Current
Affairs

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?

Accepted Answer

Correct Option: C. Both 1 and 2

Strategy: First, evaluate Statement 2. The link between **NPCI** and the launch of **RuPay** is a common factual point; recognizing its correctness narrows down options.

Then, assess Statement 1. NPCI's products like UPI, IMPS, and RuPay cards aim to make digital transactions cheaper and more accessible, aligning with the goal of **financial inclusion**.

Since both statements are correct, the choice becomes clear.

Key Info: ## National Payments Corporation of India (NPCI)

NPCI is an umbrella organization for operating retail payments and settlement systems in India. It 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.

- **Objective**: To create a robust and efficient payment and settlement infrastructure in the country.
- **Legal Status**: It is a 'Not for Profit' company registered under Section 8 of the Companies Act, 2013.
- **Ownership**: It is owned by a consortium of major public sector, private sector, foreign, cooperative, and regional rural banks.
- **Key Products and Services**: Unified Payments Interface (UPI), RuPay, Immediate Payment Service (IMPS), National Automated Clearing House (NACH), Aadhaar enabled Payment System (AePS), Bharat Bill Payment System (BBPS), and National Electronic Toll Collection (NETC) for FASTag.

## RuPay

RuPay is India's indigenous domestic card payment network, conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfil the RBI's vision of having a domestic, open, and multilateral system of payments.

- **Launch**: Officially dedicated to the nation in 2014.
- **Purpose**: To reduce the dependency on international card schemes like Visa and Mastercard, thereby lowering transaction processing costs for banks and merchants.
- **Integration with Financial Inclusion**: RuPay cards are a cornerstone of the Pradhan Mantri Jan Dhan Yojana (PMJDY), as they are issued to all beneficiaries opening a bank account under the scheme. This has significantly contributed to bringing a large segment of the population into the formal financial system.

## Financial Inclusion

Financial inclusion refers to the delivery of financial services at an affordable cost to all sections of society, especially disadvantaged and low-income segments. The goal is to ensure that everyone has access to formal financial products like bank accounts, credit, insurance, and payment systems.

- **Role of NPCI**: NPCI plays a critical role in promoting financial inclusion by creating a low-cost, interoperable, and secure payment infrastructure. Its platforms like UPI and AePS allow for easy and affordable transactions, even in remote areas, thus bringing more people into the digital economy.

Answer

Option A: 1 only

Answer

Option B: 2 only

Answer

Option D: Neither 1 nor 2

Consider the following statements: National Payment Corporation of India (NPCI) helps in promoting financial inclusion in the country. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct?

Consider the following statements:

National Payment Corporation of India (NPCI) helps in promoting financial inclusion in the country.

NPCI has launched RuPay, a card payment scheme.
Which of the statements given above is/are correct?