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Q79 (IAS/2017) Economy › Money, Banking & Inflation › Digital currency payments Official Key

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 ?

Result
Your answer: —  ·  Correct: C
Explanation

The correct answer is option C because both statements are correct.

National Payments Corporation of India (NPCI) is an umbrella organization to operate retail payments and settlement systems in India.[1] It is an initiative of RBI and Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust payment and settlement infrastructure in India.[1] By operating retail payment systems and creating robust payment infrastructure, NPCI inherently promotes financial inclusion by making banking services accessible to a wider population.

Statement 2 is also correct. RuPay Cards are among the services operated by NPCI[3], confirming that NPCI has indeed launched RuPay as a card payment scheme. RuPay serves as India's domestic card payment network, providing an alternative to international card schemes and supporting the government's vision of a less-cash economy.

Therefore, both statements 1 and 2 are correct, making option C the right answer.

Sources
  1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > National Payments Corporation of India > p. 192
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 10.Oversight of payment and settlement systems > p. 71
  3. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 10.Oversight of payment and settlement systems > p. 71
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Consider the following statements : 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the co…
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10
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This is a textbook 'Institutions & Instruments' question. NPCI is the backbone of India's digital economy; missing this indicates a gap in your core 'Banking & Finance' static notes. It requires zero current affairs digging if you have read the standard chapter on Payment Systems.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Does the National Payments Corporation of India (NPCI) help promote financial inclusion in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > National Payments Corporation of India > p. 192
Presence: 4/5
“• National Payments Corporation of India (NPCI) is an umbrella organization to operate retail payments and settlement systems in India. • It is an initiative of RBI and Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust payment and settlement infrastructure in India. • It was incorporated as a 'Not-for-Profit Company' in 2008. \bullet• The headquarters of NPCI is located in Mumbai.”
Why this source?
  • Describes NPCI as the umbrella body created to operate retail payments and settlement systems in India.
  • Shows NPCI was established by RBI and IBA to create a robust payment and settlement infrastructure.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 10.Oversight of payment and settlement systems > p. 71
Presence: 5/5
“• Unified Payments Interface (UPI)• Aadhar Enabled Payment System (AEPS)• Rupay Cards• National Automatic Clearing House (ACH)• Linking of ATMs across India (some other operators are also involved)• National Electronic Toll collection (It provides an electronic payment facility to customer to make the payments at national, state and city toll plazas by identifying the vehicle uniquely through a FASTag) NPCI is a 'Not for Profit' company where 51% stake is owned by public sector banks.”
Why this source?
  • Lists NPCI-operated retail digital payment platforms (UPI, AEPS, RuPay) that extend payment access across the population.
  • Notes NPCI's structure (not-for-profit; majority public-sector bank ownership) consistent with a public-good role in payments.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > National Strategy for Financial Inclusion (2019-24) > p. 241
Presence: 3/5
“RBI announced the National Strategy for Financial Inclusion (2019-24) in January 2020. It identifies financial inclusion as a key driver of economic growth and poverty alleviation worldwide. It aims to strengthen the broader ecosystem for promoting various modes of digital financial services. It has been prepared by Financial Inclusion Advisory Committee (FIAC) of the RBI. RBI has identified six major strategic objectives for financial inclusion.”
Why this source?
  • States the National Strategy for Financial Inclusion (2019-24) aims to strengthen the ecosystem for promoting digital financial services.
  • Provides the policy context that digital payment infrastructure supports financial inclusion objectives.
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