Latest news with #NPCI
Time of India
11 hours ago
- Business
- Time of India
NPCI introduces real time PAN-Bank Account linking on income tax website; taxpayers may get faster income tax refunds
NPCI has launched a new PAN and Bank Account Validation API for government departments, enabling real-time verification of taxpayer details directly from banks' Core Banking Systems. This initiative aims to streamline income tax refunds and direct benefit transfers by ensuring faster, error-free processing and reducing fraud risks. Banks are advised to prioritize implementation for the Government of India. Tired of too many ads? Remove Ads What NPCI circular said on PAN-Bank Account linking? Tired of too many ads? Remove Ads How will the new facility help in faster income tax refunds? The National Payments Corporation of India (NPCI) has launched a new facility regarding PAN and Bank Account validation on the income tax e-filing website. The new facility will help taxpayers in quick validation on their PAN-Bank account linking on the income tax e-filing website. 'The main goal of this is simplifying real-time verification of PAN details, bank account status, and account holder identities straight from banks' Core Banking Systems (CBS),' the NPCI circular stated. The new facility was announced in a circular dated June 17, a continuation of that initiative, NPCI has now introduced a new PAN and Bank Account Validation API designed specifically for Government departments. This API will facilitate real-time verification of PAN details, Bank account status and accountholder name directly from the bank's Core Banking System (CBS).Utkarsh Bhatnagar, Partner, Cyril Amarchand Mangaldas, says, 'This will enable quicker and real time validation of PAN and bank account details of taxpayers accessing the Income Tax website.'According to the NPCI circular on June 17, 2025, "This API will be used by Government departments to verify the customer account details like PAN validation/Account Status Validation/Account holder name validation from their bank CBS. As this is a service provided to the Government of India all the Member Banks are advised to take necessary steps for implementation on priority."Bhatnagar says, 'The new facility will enable faster and error-free processing of income tax refunds and direct benefit transfers by instantly verifying details, slashing delays and reducing fraud risks.'Banks will have to upgrade their systems to comply with NPCI's secure API standards, which could involve significant operational changes. While taxpayers will benefit from faster, error-free refund processing, the transition may pose challenges like system upgrades and potential cybersecurity initiative aligns with NPCI's broader mission to strengthen India's digital payment ecosystem , promising greater efficiency but requiring robust collaboration among stakeholders.
Time of India
17 hours ago
- Business
- Time of India
Faster salary credit, SIP debit, EMI payment and more under new NACH 3.0 system by NPCI from July 2025, know more
What is the significant update being made to the NACH system? Enhanced GUI interface: The graphics user interface (GUI) is being upgraded to align with the latest security standards. Improved Navigation: Banks can now view all relevant details on a single screen for easier access and monitoring. Optimised file handling: The system can now handle a higher volume of files more efficiently. Advanced Dashboard: Banks will have access to an enhanced dashboard to track the status of files presented and received. Self-service user management: Users can create accounts and reset passwords independently. Escalation matrix updates: Banks can now submit or update their escalation matrix with NPCI at their convenience. Security Enhancements made in NACH 3.0 Advanced technology used for data transmission and storage through both GUI and H2H. Multi-factor authentication (MFA) for user access (After go live feature will be enabled). Role-based access controls to ensure appropriate data visibility. Enhanced audit trails for better traceability and compliance. Real-time monitoring and alerts for transaction processing and receiving activities. Disabling of plain text file downloads to prevent unauthorised access to sensitive data. Implementation of a PGP encryption module for secure file downloads from the front end, ensuring confidentiality and data integrity. How can consumers benefit from the big NACH 3.0 update? Faster processing time for salary, EMI, school fees, etc NACH 3.0's updates can minimise human errors and improve customer's experience NACH 3.0 fixed a major security loophole NACH 3.0 incorporates PGP (Pretty Good Privacy) encryption module Faster resolution of disputes Starting the first week of July 2025, you can look forward to quicker salary credit in your bank accounts, faster bank transfer of funds in NACH related transactions and many more, thanks to a significant update being made to the NACH system by the National Payments Corporation of India (NPCI) NPCI has said in a circular dated June 6, 2025, that the NACH system is set to undergo a significant update and would henceforth be called NACH the uninitiated, NACH (National Automated Clearing House) is the backbone of the Indian inter-bank recurring money transfer system. It is designed to offer an efficient and robust platform for both debit and credit transactions, including those for salaries, pensions, subsidies, and loan to put it in context, your mutual fund SIP payments, Netflix subscriptions and other auto-payments are also routed through NACH via the e-mandate mechanism. This is how NACH is integrated into the daily lives of millions of that you know how important NACH is in our everyday life, read on to know more about how significant this new NACH update is and how it can help said in the circular that this new version of NACH dubbed as 3.0 incorporates a range of security and functional enhancements designed to improve user experience, strengthen data protection, and support higher transaction volumes with greater are some of the updates:NPCI said that under the NACH 3.0 system advanced security standards have been implemented to strengthen the overall integrity and safety of the system. Key security improvements include:Here's how the new NACH 3.0 update may help consumers, according to experts,Shravan Shetty, Managing Director, Primus Partners, highlights that one of the biggest beneficiaries of this new NACH update will be consumers getting salary and making EMI explains: 'The optimized file handling capabilities under NACH 3.0 mean the system can now manage a larger volume of transactions with better efficiency. For banks, this will result in faster processing times, and for customers, it will ensure a smoother experience—especially during high-volume periods like salary credits or EMI collections.'Manish Kumar Goyal, chairman and managing director, Finkeda, a digital banking and payments company, says: 'One of the updates in NACH 3.0 includes real-time monitoring and alerts for transaction processing and receiving, and this is a big thing. This is because most payments via NACH pertain to EMIs, salaries, and scheduled payments. Hence due to the implementation of this real-time functionality, it would expedite payments, thereby benefiting both the bank and the customer.'Goyal explains: 'For such services (salaries, EMI, etc), if customers were given instant notifications whenever they send or receive money, it would enhance consumers' ability to steer their financial value. Besides, with improved technology and swift-solving ability, NACH promises to become more secure, transparent, and user-friendly—especially for common recurring payments.'Muskkan Kukreja, Assistant Director, Accounting and Finance, Dr Shantilal K Somaiya School of Commerce and Business Studies, agrees with Goyal and Shetty and adds: 'The optimized file handling capabilities mean the system can now manage a larger volume of transactions with better efficiency. For banks, this will result in faster processing times, and for customers, it will ensure a smoother experience—especially during high-volume periods like salary credits or EMI collections.'Kukreja says that: 'The NACH system (v 3.0) now offers live dashboards and alerts to track mandate rejections, transaction failures, and suspicious patterns. This means banks can now respond in real-time due to this immediate monitoring and they no longer are required to wait for end-of-day reports.'Ritesh Raj Saxena, Head of Direct Banking, IndusInd Bank says: "The upgraded interface, more streamlined navigation, and self-service tools allow for greater operational agility, while the enhanced security architecture, including encrypted downloads and access controls, ensure safe handling of sensitive data. Together, these updates will enable banks to reimagine the customer journey, playing a pivotal role in improving process oversight and minimizing risk exposure, ultimately benefitting both banks and their customers."Kukreja explains that prior to this new update, some transaction or mandate data could be downloaded in plain text, which was readable and says: 'This created a major risk if unauthorized personnel accessed it. NACH 3.0 has disabled this option, requiring all file access to be encrypted or done through secure dashboards. This removes the chance for manual mishandling or insider threats, where files could be accidentally shared or leaked on purpose.'Kukreja explains: 'The security improvements in NACH 3.0, including the PGP encryption module, the disabling of plain text file downloads, and real-time monitoring, are important upgrades that aim to boost data protection and lower fraud risks for both banks and their customers. PGP (Pretty Good Privacy) is a common encryption method that protects sensitive data, such as mandate files or transaction details. It ensures that only authorized parties can decrypt and read the information. The NACH files sent between banks and NPCI are encrypted with PGP, securing them from start to finish. This process helps stop data breaches during file transfers by making the content unreadable to unauthorized users and ensures that the data remains intact.'Whenever there are any payment related disputes or errors, consumers file a complaint with the bank which in turn files a complaint with NACH's system only during a defined time. This system is set to change with NACH 3.0 as banks can now submit or update their escalation matrix as per their explains: 'One of the enhancements made with NACH 3.0 is that banks can now submit or update their escalation matrix. These clear escalation paths will help ensure that any technical or operational issues are handled quickly and reach the right authority. Being clear about how complaints are managed is expected to help build customer confidence in the digital systems.'Kukreja further adds: 'Another enhancement in the NACH ecosystem is the ability for bank staff to navigate the NACH portal more easily on a single screen, reducing time taken for mandate management, transaction monitoring, and troubleshooting. Further, it is expected that banks will have access to an enhanced dashboard to track the status of the files that have been presented and received.'Goyal agrees with Kukreja and adds: 'The introduction of the escalation matrix brings about improved timelines for complaints redressal, whereas the complaints become simpler to be resolved due to the presence of the matrix.'
Indian Express
a day ago
- Automotive
- Indian Express
Daily subject-wise quiz : Economy MCQs on automobile loading terminals of the Indian Railways, FASTag and more (Week 115)
UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today's subject quiz on Economy to check your progress. 🚨 Click Here to read the UPSC Essentials magazine for May 2025. Share your views and suggestions in the comment box or at With reference to the FASTag, consider the following statements: 1. It is managed by the National Payments Corporation of India (NPCI) and the National Highways Authority of India (NHAI). 2. It was launched in 2014 as a pilot project and made mandatory at every toll plaza in the country in 2021. 3. In its new annual pass scheme, there is no limitation on the number of trips. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Explanation — The Minister of Road Transport and Highways introduced an annual FASTag-based permit of Rs 3,000 for 'hassle-free highway travel.' — FASTag is an electronic toll collecting system operated by the National Payments Corporation of India (NPCI) by the National Highways Authority of India (NHAI). A FASTag sticker is typically placed on the windscreen of a vehicle. Hence, statement 1 is correct. — It was established as a trial initiative in 2014 and will become required at all toll plazas in the country by 2021. Hence, statement 2 is correct. — The new annual pass plan, enabled on the FASTag, will let private cars, jeeps and vans to pass via National Highway (NH) and National Motorway (NE) pay plazas for the specified term without incurring per-trip user fees. — Once the Annual Pass has completed 200 travels or one year from the date of activation, it will automatically return to a regular FASTag. However, after the 200-trip limit is reached, the user may repurchase the Annual Pass, even if the one-year validity period has not yet expired. Hence, statement 3 is not correct. — The pass is not transferable and is only valid for the vehicle to which the FASTag is affixed and registered. Therefore, option (b) is the correct answer. With reference to the Strait of Hormuz, consider the following statements: 1. Around one-fifth of global liquid petroleum fuel consumption and global liquefied natural gas (LNG) trade transits through the strait. 2. It is a critical narrow waterway between Iran and Kuwait. 3. It connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. 4. India's LNG imports from Qatar do not come through the Strait of Hormuz. How many of the statements given above are correct? (a) Only one (b) Only two (c) Only three (d) All four Explanation — The Strait of Hormuz is a narrow waterway between Iran and Oman that connects the Persian Gulf, the Gulf of Oman, and the Arabian Sea. Hence, statement 2 is not correct and statement 3 is correct. — The US Energy Information Administration (EIA) refers to it as the 'world's most important oil transit chokepoint,' with the strait handling around one-fifth of worldwide liquid petroleum fuel usage and liquefied natural gas (LNG) traffic. Hence, statement 1 is correct. — Much of India's oil comes from significant West Asian sources such as Iraq, Saudi Arabia, and the UAE and is transported to Indian ports via the Strait of Hormuz. The majority of India's LNG imports, which are primarily from Qatar, also pass through this critical choke point. Hence, statement 4 is not correct. Therefore, option (b) is the correct answer. With reference to the automobile loading terminals of the Indian Railways and region associated, consider the following pairs: 1. Chitpur – Eastern Railway 2. Hirakud – East Coast Railway 3. New Tinsukia – Northeast Frontier Railway How many of the pairs given above are correctly marked? (a) Only one (b) Only two (c) All three (d) None Explanation — Amid a campaign to reduce carbon emissions in the automobile sector, the Indian Railways' share of passenger vehicles shipped has climbed to more than 20% of total car production in the country in 2024-25, up from 1.7% in 2014-15. This has created a fresh opportunity for the railways to increase revenue while also fulfilling India's net zero emission objective by 2070. — The Ministry of Railways has also added many automobile loading terminals in recent years namely Chitpur (Eastern Railway), Penukonda (South Western Railway), Nasrala (Northern Railway), Nautanwa and Bakshi ka Talab (North Eastern Railway), Mesra (East Central Railway), Hirakud (East Coast Railway), Champaner and Chharodi (Western Railway), Baihata, Salchapra, Furkating, New Tinsukia, Jirania, Agthori (Northeast Frontier Railway), Loni, Khadki, AJNI, Vilad (Central Railway) etc. Therefore, option (c) is the correct answer. The French military aircraft and business jet maker Dassault Aviation will manufacture its best-selling business executive jet—the Falcon 2000—at Nagpur in partnership with: (a) Tata Advanced Systems Limited (b) Mahindra Aerospace (c) Hindustan Aeronautics Limited (d) Reliance Aerostructure Limited Explanation — Dassault Aviation, a French military aircraft and business jet manufacturer, will produce its best-selling business executive jet, the Falcon 2000, in Nagpur in collaboration with Reliance Group company Reliance Aerostructure Ltd (RAL). — At the Paris Air Show, the two firms announced a strategic cooperation for this goal, stating that the first Falcon 2000 plane built in India will be ready in 2028. — Dassault Aviation will construct Falcon 2000 jets outside of France for the first time in the company's long history. This pioneering endeavour will position India as a strategic hub for high-end business jet manufacture. — It is a momentous time for the Indian aerospace and manufacturing industries, as the landmark agreement allows India to join the elite club of countries building next-generation business jets, which includes the United States, France, Canada, and Brazil. Therefore, option (d) is the correct answer. As of May 2025, what is the correct chronological order of these countries in terms of economy from top to bottom? 1. United States 2. Germany 3. China 4. India 5. Japan Select the correct answer using the codes given below: (a) 1—2—3—4—5 (b) 1—3—5—2—4 (c) 1—5—4—3—2 (d) 1—3—2—4—5 Explanation — BVR Subrahmanyam, CEO of Aayog, announced that India had surpassed Japan to become the world's fourth largest economy. — Subrahmanyam, citing International Monetary Fund (IMF) figures, stated that India is now larger than Japan. Until 2024, India was the world's fifth largest economy. 'It is only the US, China and Germany which are larger than India, and if we stick to what is being planned and what is being thought through, in 2.5-3 years, we will be the third largest economy,' Subrahmanyam told the crowd. — In its April World Economic Outlook (WEO) report, the IMF predicted that India would be the world's fourth largest economy by 2025, with a GDP of USD 4.19 trillion, ahead of Japan. — The IMF forecasts India's nominal GDP for 2025 (FY26) to be USD 4.187 billion, slightly higher than Japan's probable GDP of USD 4.187 billion. According to IMF figures, India's per capita income has doubled, from USD 1,438 in 2013-14 to USD 2,880 in 2025. Therefore, option (d) is the correct answer. 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Business Standard
3 days ago
- Business
- Business Standard
NPCI's new rules speed up UPI: How it impacts your daily transactions
Banks and payment service providers asked to cut response times for key processes so that payment service's quality improves UPI transactions should become faster starting this week after the organisation that manages the digital payments system asked member banks and payment service providers to reduce response time for key processes. The National Payments Corporation of India (NPCI), in a circular dated April 26, 2025, has revised the turnaround time for several APIs (application programming interfaces), the technology that facilitates UPI (Unified Payments Interface) transactions between banks and apps. Here are the key changes: Request pay (debit and credit): Transaction reversals: Time allowed reduced to 10 seconds from the earlier 30 seconds Validate address for pay/collect requests: Must be processed within 8 seconds, earlier limit was 10 seconds These changes apply across multiple stakeholders, including payer and payee Payment Service Providers, banks, and apps. ALSO READ | India's first credit card with UPI and Visa in one - and zero forex fees How does it help UPI users Faster API responses mean: Quicker confirmations for your payments, especially during peak hours or high-traffic days Reduced wait time for failed transaction reversals Lower chances of payment timeouts or declines due to slow backend processes 'With 15-second UPI processing, payments will now be faster and more reliable, a win-win for India's 350 million users,' says Sarika Shetty, chief executive officer & co-founder, RentenPe. 'This will ease load during peak hours, improve gateway efficiency, and encourage more people to choose UPI over IMPS or NEFT, especially as UPI expands into rural areas and global markets.' What banks and apps must do: NPCI has asked all UPI participants to upgrade their systems to comply with the new response time. They must also ensure that these changes don't increase the number of technical declines (failures due to system issues). With this move, NPCI is clearly signalling its focus on streamlining the digital payment experience, especially as UPI expands into offline, credit, and international use cases.
Hindustan Times
3 days ago
- Business
- Hindustan Times
UPI improved: What changes did NPCI roll out to boost payment experience?
Unified Payments Interface(UPI) payments have been optimised with fast transactions and balance checks, the National Payments Corporation of India (NPCI), the body that manages UPI operations, said. Reversals are now being processed in just 10 to 15 seconds, which is a significantly lower wait time compared to before. The decision comes in the light of NPCI's nudge to improve user experience on the country's most widely used digital payments platform. As a part of another simultaneous change by NPCI, users can now use UPI to check their bank balance up to 50 times a day. Earlier, there was no limit on the number of balance checks. The new cap is designed to improve system efficiency and reduce unnecessary load on the network, an expert said, quoted by PTI. The time taken to load the status of a transaction or redo a failed transaction has also been decreased. Earlier, if a payment didn't turn out to be successful, the user needed to wait for up to 30 seconds or more to check whether the money was debited or returned. With the latest change by NPCI, this process will be done in just 10 seconds, so that the user can be sure about the failure or success of the transaction in the minimum time. UPI is a digital payment interface developed by NPCI to ease bank transactions digitally, through mobile phones. These changes are functional on popular payment apps like PhonePe, Google Pay, Paytm, and other UPI platforms. As a part of an earlier change facilitated on Jun 8, NPCI had optimised UPI Lite, which is a simplified version of UPI, designed for low-value transactions and without a UPI PIN for those under a certain amount. According to the change starting June 8, UPI_NPCI's X handle posted an announcement saying UPI Lite users could make payments up to ₹1,000 without a PIN. 'Plus, with a UPI Lite balance limit of ₹5,000, you can power through more payments with ease,' it added.
