UPI developer National Payments Corporation of India (NPCI) has reported significant financial growth for FY24, with revenues rising to Rs 2,876 crore, up nearly 40% from Rs 2,065 crore recorded in FY23.
NPCI saw its profit, called surplus due to its not-for-profit status, rise 37% to Rs 1,134 crore.
Founded in 2008 as a collaborative initiative between the Reserve Bank of India (RBI) and Indian Banks’ Association, NPCI It plays a pivotal role in overseeing India’s retail payment and settlement systems.
Apart from BHIMNPCI also manages payment services like IMPS, NACH, RuPay, AePs, FASTag and BBPS.
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Various sources of income
NPCI’s revenue is primarily derived from payment services, which account for 94% of its total revenue, which stood at Rs 2,693 crore in FY24. Other revenue sources include network and certification fees, card fees and membership fees.
NPCI’s overall income, including interest earnings on deposits and government bonds, totaled Rs 3,279 crore for the fiscal, marking a growth of 42% from Rs 2,311 crore in FY23.
The UPI platform continues to dominate the digital payments landscape in India, handling nearly 80% of the country’s online transactions.
With over 35 million unique users, UPI processes around 15 billion transactions per month, worth over Rs 20 lakh crore, positioning itself as the world’s leading real-time payment system.
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Increase in expenses
NPCI’s operating expenses also saw a sharp rise in FY24. Total expenses rose 47% to Rs 1,740 crore, compared to Rs 1,183 crore in the previous year. Marketing and cash back expenses accounted for almost half of this expense, which stood at Rs 782 crore.
These costs were driven by promotional campaigns aimed at encouraging digital payments, including cashback incentives for RuPay card users and sponsorships for various digital transaction initiatives.
Subsidiaries contribute to overall performance
NPCI operates two subsidiaries: NPCI International Payments Limited (NIPL) and NPCI Bharat BillPay Limited (NBBL). These entities together reported revenues of Rs 151 crore and net profit of Rs 40 crore during FY24.
NIPL is focused on expanding NPCI’s digital payment services internationally by collaborating with foreign financial institutions, while NBBL oversees the Bharat Bill Payment System (BBPS), which facilitates payment of utility bills through various payment platforms in India.
NBBL has emerged as a key player in the utility payments sector, connecting consumers and billers through third-party applications, thereby expanding NPCI’s influence in the growing digital economy.
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