How does UPI work with NPCI?

UPI works with the National Payments Corporation of India (NPCI) by utilizing a centralized switch that routes transaction requests between banks. NPCI acts as the core infrastructure provider and regulator for the UPI network.

• The NPCI switch validates the transaction details and identifies the remitter and beneficiary banks.
• It facilitates real-time clearing and settlement of funds directly between bank accounts.
• NPCI sets the technical standards and security protocols, such as two-factor authentication, to ensure safe and instant 24/7 transfers across the Indian banking ecosystem.