Context:
For payment apps, NPCI began deployment of ‘UPI Tap and Pay’ facility which utilises near-field communication (NFC) technology.
Near-Field Communication (NFC) technology:
- It uses electromagnetic radio fields to allow 2 compatible devices to share information
- Range of NFC – 4 to 5 centimetres
- RFID and Bluetooth also use radiofrequency but their reach is much higher
- Range – RFID communication (100 metres or more); Bluetooth (10-100 meters)
- Working process –
- An NFC-compatible device emits radio frequency signals that interact with an NFC tag, creating a current facilitating communication between the two.
- The tag is passive (can only send information), while the other device like a smartphone is active (capable of both sending and receiving information).
- Benefits of NFC –
- Enables contactless payment.
- Uses encryption to guarantee the security and privacy of transactions.
- Faster information sharing with NFC-device enabled with peer-to-peer sharing.
- Can help hospitals better track patient information.
About National Payments Corporation of India (NPCI):
- An umbrella organisation for operating retail payments and settlement systems in India.
- An initiative of – RBI and Indian Banks’ Association (IBA)
- Established under the Payment and Settlement Systems Act, 2007.
- Incorporated as a “Not for Profit” Company under Section 8 of Companies Act 2013.
Source: Business Standard
Previous Year Question
Consider the following statements:
1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2017 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c)
