Institutional Architecture
RBI, NPCI, and the PSS Act, 2007
UPI functions within a two-tier regulatory structure: the Reserve Bank of India as the statutory regulator of all payment systems, and the National Payments Corporation of India (NPCI) as the not-for-profit entity that actually operates UPI, RuPay, and other retail payment rails.
- The Payment and Settlement Systems Act, 2007 empowers the RBI to authorise, regulate, and oversee all payment systems in India; Section 4 requires RBI authorisation to operate any payment system.
- NPCI was incorporated in December 2008 as a Section 25 (now Section 8) not-for-profit company, set up jointly by the RBI and the Indian Banks' Association; it launched UPI in April 2016.
- UPI has grown to become the dominant digital payment rail in India, processing roughly 85% of India's digital payment volumes and around 49% of global real-time payment transaction volume in 2026.
- The RBI has publicly backed the new MDR framework, reiterating that consumers will continue to face no charges on UPI payments.
● Tracked since September 16, 2026 · last seen September 21, 2026 · updates as the daily brief publishes
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