Question 57 from UPSC CSE 2018 - Current Affairs

Question

Which one of the following links all the ATMs in India?

IASCODEX · Accepted Answer

Correct Option: C. National Payments Corporation of India

Strategy: - Identify the institution responsible for interlinking all ATMs with India's central payments infrastructure.
- Exclude regulatory bodies (RBI, IBA) as they are not direct ATM network operators.
- Recognize that the National Payments Corporation of India (NPCI) manages the National Financial Switch, which is specifically designed for retail payment systems and ATM interlinking.

Key Info: ## National Payments Corporation of India (NPCI)

The National Payments Corporation of India (NPCI), established in 2008 under the guidance of the Reserve Bank of India and Indian Banks' Association, is an umbrella organization for operating retail payments and settlement systems in India.

### National Financial Switch (NFS)

- NPCI manages the National Financial Switch (NFS), which interconnects all ATMs of member banks across the country.
- NFS enables interoperable cash withdrawals and balance inquiries at any ATM.
- It was initially developed by the Institute for Development and Research in Banking Technology (IDRBT) in 2004.
- NPCI took over NFS in 2009.
- As of recent years, NFS connects hundreds of member entities, including major public and private sector banks, regional rural banks, and White Label ATM Operators, ensuring seamless ATM interoperability nationwide.

### Other Institutions

- **Indian Banks' Association (IBA)** -- An industry body representing banking interests.
- **National Securities Depository Limited (NSDL)** -- Manages electronic securities depository services.
- **Reserve Bank of India (RBI)** -- The central monetary authority and regulator, not an operator of ATM networking or switching infrastructure.

IASCODEX · Answer

Option A: Indian Banks' Association

IASCODEX · Answer

Option B: National Securities Depository Limited

IASCODEX · Answer

Option D: Reserve Bank of India