UPSC Prelims 2017 · Question 29 of 99
UPSC Prelims 2017 question on National Payments Corporation Functions
- ExamUPSC CSE
- Year2017
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyEasy
- TypeStatement
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?
Show answer
Answer: C. Both 1 and 2
Verdict
The answer is both 1 and 2. The National Payments Corporation of India promotes financial inclusion and it launched RuPay.
Analysis
Statement 1 is CORRECT. NPCI is the umbrella organisation for retail payments in India, set up with the guidance and support of the Reserve Bank and the Indian Banks' Association to consolidate multiple systems into a uniform nationwide standard and to provide an affordable payment mechanism for the common man, which is financial inclusion in substance. Statement 2 is CORRECT. RuPay, India's domestic card payment scheme, is an NPCI product, as are the Unified Payments Interface, IMPS and the Aadhaar enabled payment system.
Source
Press Information Bureau release and press reporting on payments.
How to crack it
Attach every retail payment product to NPCI as a block rather than learning them separately, since RuPay, UPI, BHIM, IMPS, NACH and the Aadhaar enabled payment system all belong to it. Then note the ownership structure, since NPCI is promoted by banks under Reserve Bank guidance rather than being a government department or a Reserve Bank subsidiary, which is the detail most often turned into a wrong statement.