Question Details

Which one of the following links all the ATMs in India

Options

A

Indian Banks’ Association

B

National Securities Depository Limited

C

National Payments Corporation of India

D

Reserve Bank of India

Show Answer

Correct Answer :

Option C

National Payments Corporation of India

Solution :

The correct option is National Payments Corporation of India.


Step-by-Step Explanation:

1. Understanding National Financial Switch (NFS):
The National Financial Switch (NFS) is the largest network of shared Automated Teller Machines (ATMs) in India. It facilitates inter-bank ATM transactions, allowing cardholders of any participating bank to use ATMs of other banks across the country seamlessly.


2. Role of National Payments Corporation of India (NPCI):
The National Payments Corporation of India (NPCI) is an umbrella organisation for operating retail payments and settlement systems in India. It was created by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.


3. Connecting ATMs across India:
NPCI took over the operation of the National Financial Switch (NFS) from the Institute for Development and Research in Banking Technology (IDRBT) in 2009. Thus, NPCI operates and links all the ATMs across India through NFS, ensuring nationwide connectivity and interoperability for electronic payment services.

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