Page 34 - Banking Finance August 2017

COVER STORY

NATION'S DIGITAL

INFRASTRUCTURE

BUILT BY NPCI

Introduction: ers. This connectivity is made possible through ATM Switch.
This is called as interoperability. This is result of creation of
The developments in Information and Computer Technology
common digital infrastructure, which is useable by every
(ICT) have brought number of innovations as digital banking
member bank. National Payments Corporation of India
products. These products provide the convenience in access-
(NPCI) has been building this digital infrastructure.
ing banking needs of the customers, anywhere and anytime.
It makes the banking services available to mass at the low-
NPCI is a body promoted by RBI and has presently ten core
est cost. Each bank is developing its own digital products to
promoter banks (State Bank of India, Punjab National Bank,
serve the customers and to acquire new customers.
Canara Bank, Bank of Baroda, Union bank of India, Bank of
India, ICICI Bank, HDFC Bank, Citibank and HSBC).NPCI, an
As of February 2017 Banks have deployed 2,07,402 ATMs
umbrella institution for all the Retail Payment Systems in
and 22,24,977 Point of Sale (PoS) terminals. To make an ATM
the country was incorporated in 2008.
of a specific bank, accessible to any bank customer there is
a need for establishing connectivity among the bank serv-
The core objective was to consolidate and integrate the
multiple systems with varying service levels into nation-wide
About the author uniform and standard business process for all retail payment
systems. The other objective was to facilitate an affordable
P Dhanasekaran payment mechanism to benefit the common man across the
Msc (Agri), CAIIB country and help financial inclusion. NPCI is aimed to oper-
Chief Manager (Faculty)
Union Bank of India Staff College ate for the benefit of all the member banks and their cus-
Bengaluru tomers. NPCI has developed/ operating the following digi-
tal infrastructure:

34 | 2017 | AUGUST | BANKING FINANCE

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