Institutional Roles
RBI, NPCI, and Government in Payment Regulation
India's digital payments ecosystem operates through a layered institutional structure: the RBI regulates payment systems under the PSS Act, 2007; the National Payments Corporation of India (NPCI), a not-for-profit entity promoted by RBI and banks, operates UPI, RuPay, and other retail payment rails; and the Central Government (Finance Ministry) sets tax-linked mandates (like Section 269SU) and, after this amendment, gains explicit power to notify chargeable payment modes.
- NPCI was incorporated in 2008 and operates UPI (launched 2016), RuPay, IMPS, BHIM, among other retail payment systems
- Under the amended framework, the Central Government — not RBI alone — will decide which digital payment methods may attract charges, given the statutory link to Section 269SU of the Income-tax Act
- The bill was passed by voice vote in the Lok Sabha
● Tracked since August 06, 2026 · last seen September 06, 2026 · updates as the daily brief publishes
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