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Question : The National Payments Corporation of India was set up under the provisions of which Act?

Option 1: The SARFAESI Act, 2002

Option 2: Payment and Settlement Systems Act, 2007

Option 3: Government Securities Act, 2006

Option 4: Companies Act, 2013


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Answer (1)
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Correct Answer: Payment and Settlement Systems Act, 2007


Solution : The correct option is the Payment and Settlement Systems Act, of 2007.

The Payment and Settlement Systems Act of 2007 provides the legal framework for the regulation and supervision of payment systems in India. It empowers the Reserve Bank of India (RBI) to regulate and oversee payment and settlement systems in the country.

The NPCI operates under the regulatory framework established by the RBI, but its specific establishment is governed by the Companies Act.

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