In terms of UPI transaction success rates, Paytm Payments Bank Ltd. (PPBL) has once again excelled all major Indian banks. The National Payments Corporation of India (NPCI) just released a report, and it shows that among all UPI remitter banks and UPI beneficiary banks, PPBL has the lowest technical decrease rate at 0.02% and 0.04%, respectively.
The technical decline rate for all other large banks is far greater, at about 1%. This demonstrates the supremacy of Paytm Payments Bank's internal technical infrastructure, which has been the main factor in its success.
But the question is: What Is This NPCI?
The Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) launched the National Payments Corporation of India (NPCI), an umbrella organization for managing retail payments and settlement systems in India, in accordance with the provisions of the Payment and Settlement Systems Act, 2007, in order to build a strong payment and settlement infrastructure in the country.
With the intention of providing infrastructure to the entire Indian banking system for both physical and electronic payment and settlement systems, NPCI was established as a 'Not for Profit' Company in accordance with the provisions of Section 25 of the Companies Act 1956 (currently Section 8 of the Companies Act 2013).
This was done in consideration of the utility nature of NPCI's objects. The Company is committed to using technology to innovate retail payment systems in order to improve operational efficiency and expand the use of payment systems.
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 make up the list of the ten core promoter banks. The shareholding was broadened in 2016 to include 56 member banks and other banks from various industries.
New organizations that fall under RBI regulation were added in 2020, including Payment Service Operators, Payment Banks(Paytm, Bharatpay, Phonepay,etc), Small Finance Banks, etc. The shares were distributed in accordance with the 2013 Companies Act's applicable requirements for the issuance of equity shares through a private placement.
NPCI has created some of the best products, they are-
- RuPay.
- Immediate Payment Service (IMPS).
- National Automated Clearing House (NACH).
- Aadhaar Payment Bridge (APB).
- Aadhaar enabled Payment System (AePS).
- National Financial Switch (NFS).
- Unified Payments Interface (UPI).
- Bharat Bill Payment System.
- National Electronic Toll Collection (NETC).
By offering one or more payment options to every Indian, the goal of these items is to make India into a 'less-cash' society. We are getting closer to our goal of being the world's best payments network with each passing year.
