UPSC Prelims 2018 · Question 15 of 99
UPSC Prelims 2018 question on NPCI ATM Network
- ExamUPSC CSE
- Year2018
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyMedium
- TypeDirect
Which one of the following links all the ATMs in India?
Show answer
Answer: C. National Payments Corporation of India
Analysis
All ATMs in India are linked by the National Payments Corporation of India, so the answer is (c).
The National Financial Switch, the ATM network that links banks, was taken over by NPCI from the Institute for Development and Research in Banking Technology on 14 December 2009, when it had 37 members and connected about 50,000 ATMs. By 31 August 2017 it had 941 members, including 101 direct members, 776 sub members, 56 Regional Rural Banks and 8 White Label ATM Operators, connecting more than 2.37 lakh ATMs.
The closest distractor is (d), the Reserve Bank of India, which regulates the payment system but does not itself operate the switching network.
Source
NPCI product overview of the National Financial Switch.
How to crack it
Separate the regulator from the operator. The RBI sets rules while NPCI runs the retail payments plumbing, and the same distinction resolves questions on UPI, RuPay, IMPS and BHIM, all NPCI products. Whenever an option set contains both a central bank and a specialised operating company, ask whether the stem describes rule making or day to day operation.