India has come a long way in electronic payments in this millennia. Today India is foremost among nations that have deployed immediate Payment Systems and advanced P2P Payment Systems. With the setting up of NPCI in 2008, India has evolved all its payment systems.

Payment Systems

Payment System NameSystem TypeCurrencyClearing TypeSettlement TypeOperating ModelOperatorRegulator
IMPSImmediate Payments
INRIndian Rupee
Real-TimeMultilateral Netting0
NPCIOperator Type:3rd Party
RBIRegulator Type:Central Bank
Clearing Corporation of India Limited (CCIL)Securities Settlement
INRIndian Rupee
DeferredMultilateral Netting0
CCILOperator Type:3rd Party
RBIRegulator Type:Central Bank
Real Time Gross Settlement (RTGS) SystemRTGS
INRIndian Rupee
BanksOperator Type:Other Bank(s)
RBIRegulator Type:Central Bank
National Electronic Funds Transfer (NEFT) SystemCredit Transfer
INRIndian Rupee
BanksOperator Type:Other Bank(s)
RBIRegulator Type:Central Bank
Paper-based PaymentsPaper Instruments
INRIndian Rupee
DeferredMultilateral Netting0
3rd Party BanksOperator Type:Other Bank(s)
Reserve Bank of IndiaRegulator Type:Central Bank


CurrencyIndian Rupee (INR)
Economic BlocSAARC
Banking RegulatorReserve Bank of India
Payment Systems RegulatorReserve Bank of India
Capital Markets RegulatorSecurities and Exchange Board of India
System Operators1. RBI = RTGS & NEFT
2. NPCI = All Other Systems
Participants1. Banks – All Systems
2. PSPs – UPI & BBPS

Evolution of Payment Systems

Late 1980s

RBI kick-starts the computerisation of Payment Systems by introducing Reader-Sorter Machines in Metros for Cheque Clearing

Late 1990s

RBI sets up IDRBT in Hyderabad for electronic payments and banking research and development

Mid 2000s

RBI introduces NEFT and RTGS ushering in the electronic payments in the country


NPCI established as the payment system operator in India. Tasked to build and operate electronic payments in India


NPCI Introduces IMPS version 1.0


NPCI builds multiple payment systems – NACH, CTS, AEPS
Introduces IMPS 2.0 with A2A functionality


NPCI introduces UPI a unique P2P Payment System based on Virtual Payment Address


RTGS upgraded
NG-RTGS among the first RTGS systems to use ISO 20022 XML messages

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