The National Payments Corporation of India (NPCI) has witnessed a significant 42% increase in standalone net profit (termed as ‘surplus’) to ₹1,552 crore for FY25 as per provisional data from ICRA. Additionally, the organization saw a 19% rise in revenue, amounting to ₹3,270 crore for the fiscal year ending March 2025. This growth highlights NPCI’s crucial role in overseeing major payment platforms like UPI, IMPS, and RuPay amidst the escalating digital transactions landscape in India.
Key Takeaways for Competitive Exams
- NPCI’s surplus for FY25 surged to ₹1,552 crore, a 42% increase from the previous fiscal year.
- Revenue for FY25 reached ₹3,270 crore, showcasing a 19% growth.
- NPCI plays a pivotal role in managing key payment platforms such as UPI, IMPS, and RuPay.
- Challenges faced by NPCI include demands for MDR by fintechs and recent UPI outages.
- UPI transactions in India are on track to surpass Visa’s daily transaction volumes globally.
Why NPCI’s FY25 Performance is Significant?
NPCI’s financial performance for FY25 has garnered attention due to its notable profit and revenue growth. The surplus of ₹1,552 crore marks a substantial 42% rise from the previous fiscal year. Moreover, the revenue exceeding ₹3,270 crore comes at a time when digital transactions, particularly through UPI, are witnessing a significant surge in the country.
Background and Structure of NPCI
- NPCI was established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA).
- It functions as a not-for-profit organization and refers to its net profit as ‘surplus’ in financial reports.
- Owned by a consortium of Indian banks, NPCI acts as a central infrastructure for digital payments in India.
Key Functions of NPCI
Operates critical platforms:
- UPI (Unified Payments Interface)
- IMPS (Immediate Payment Service)
- AePS (Aadhaar-enabled Payment System)
- NACH (National Automated Clearing House)
- RuPay card network
Manages subsidiaries:
- NIPL (NPCI International Payments Limited) – Focused on global outreach of NPCI platforms.
- NBBL (NPCI Bharat BillPay Limited) – Operates as a digital bill payment aggregator.
FY25 Financial Highlights
- Standalone Net Profit (Surplus): ₹1,552 crore (a 42% increase from FY24)
- Revenue: ₹3,270 crore (a 19% growth from FY24)
- Final audited financials to be released by CAG later
Challenges Faced and Controversies
- Fintechs are demanding a Merchant Discount Rate (MDR) for sustainability.
- Government’s stance on zero MDR to encourage widespread digital adoption.
- NPCI encountered multiple UPI outages recently, resulting in user complaints.
RuPay’s Growth and Impact
- RuPay holds over 80% market share in debit cards.
- Linking RuPay credit cards to UPI has boosted their usage, competing against Visa and Mastercard.
Key Takeaways for Competitive Exams
- NPCI’s surplus for FY25 surged to ₹1,552 crore, a 42% increase from the previous fiscal year.
- Revenue for FY25 reached ₹3,270 crore, showcasing a 19% growth.
- NPCI plays a pivotal role in managing key payment platforms such as UPI, IMPS, and RuPay.
- Challenges faced by NPCI include demands for MDR by fintechs and recent UPI outages.
- UPI transactions in India are on track to surpass Visa’s daily transaction volumes globally.
