Which of the following is NOT an objective of NPCI?
Last updated May 13, 2026
Correct Answer:
Option B —
To regulate the payment and settlement systems in India.
• The Regulator: In India, the power to regulate and supervise payment and settlement systems rests solely with the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007. The NPCI is an "umbrella organization" for operating these systems, not the regulator.
• Role of NPCI (Options A, C, & D): The National Payments Corporation of India (NPCI) was set up as a specialized division by the RBI and Indian Banks' Association (IBA). Its objectives include:
o Operating retail payment systems like UPI, IMPS, RuPay, and AePS.
o Providing safe and efficient infrastructure to banks (Option D).
o Driving the "less-cash" society initiative and enhancing financial inclusion (Option C).
• Key Distinction: While the NPCI creates the technology and rules for its own products (like UPI protocols), it remains an implementing body that must comply with the regulations set by the RBI.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
