Context:
National Payments Corporation of India (NPCI) plans to spin off its BHIM app into a subsidiary to boost its expansion in India, according to industry sources.
BHIM:
- A payment platform that provides a fast, secure, and reliable way to make digital payments via UPI on mobile apps or through the USSD platform
- Launched in – 2016.
- Developed by – NPCI, under the guidance of the Reserve Bank of India.
- Facilitates direct e-payments through banks and encourages cashless transactions.
- Supports all Indian banks using UPI, built on the IMPS infrastructure.
- Allows QR code scanning for faster payment entry.
- Transaction limits – Transfer between ₹1 to ₹100,000 with no fees.
National Payments Corporation of India:
- Founded in – 2008.
- Founded by – Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
- Objective – To develop and operate retail payment and settlement systems in India.
- Major initiatives –
- Bharat Interface for Money (BHIM)
- RuPay
- Immediate Payment Service (IMPS)
- Aadhaar Payment Bridge (APB) System
- Aadhaar enabled Payment System (AePS)
Source: Business Standard
Previous Year Question
Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?
[UPSC Civil Service Exam – 2017 Prelims]
(a) Mobile wallets will not be necessary for online payments.
(b) Digital currency will totally replace physical currency in about two decades.
(c) FDI inflows will drastically increase.
(d) Direct transfer of subsidies to poor people will become very effective
Answer: (a)
