NPCI has been incorporated as a.....Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013).

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

NPCI has been incorporated as a____Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013).

A	Not for Credit
B	Not for Banking
C	Not for Marketing
D	Not for Profit

Explanation:

Detailed explanation-1: -It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), viewing its utility to provide infrastructure for operating settlement and electronic payment systems in Inda.

Detailed explanation-2: -Section 8 of the Companies Act, 2013 includes other objects such as sports, education, research, social welfare and protection of environment among others. While it could be a public or a private company, a Section 25 company is prohibited from payment of any dividend to its members.

Detailed explanation-3: -It functions under the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). NPCI was founded in 2008 as a not-for-profit organization. It aims to create nationwide standards for business and retail payments across India, which is why its services are all geared towards achieving this goal.

Detailed explanation-4: -The NPCI is a not-for-profit organisation registered under Section 8 of the Companies Act 2013.

There is 1 question to complete.