Under the provisions of the Payment and Settlement Systems Act,
2007, the Reserve Bank of India (RBI) and Indian
Banks Association (IBA) formulated an organisation
called National Payments Corporation of India
(NPCI) for operating retail payments and
settlement systems in India.
This "Not for Profit" Company was incorporated under
Section 25 of the Companies Act, 1956 (now under Section 8 of
Companies Act, 2013) to provide infrastructure to the banking
system in India for physical and electronic payment and settlement
systems.
Conceptual Understanding Of UPI System
UPI is the term that is used in the context of fund transfer
from one account to another without any requirement of bank account
number and IFSC code, in fact, one requires the virtual payment
address of the receiver in order to transfer the fund
instantly.
