NPCI sets up unit to scale up digital infrastructure beyond payments

NTSL will not be a section 8 company which is similar to the other three subsidiary structures that NPCI currently has

Moving beyond digital payments, the National Payments Corporation of India (NPCI), the operator of Unified Payments Interface, is planning to add more muscle to the country’s digital infrastructure by setting up a fourth subsidiary, NPCI Tech Solutions Ltd (NTSL).

 

The apex payments body is planning to scale up central infrastructure pipes through the subsidiary, while also experimenting with pilot projects, people familiar with the matter said.

 

These are likely to be infrastructure-led products beyond payments, such as eKYC (Know Your Customer) Setu and systems related to the central bank digital currency. 

 

NTSL will not be a Section 8 company, which is similar to the other three subsidiaries NPCI has. 

 

“It is not the objective to compete with vendors. The focus is on scaling up technology solutions and playing the role of central infrastructure,” a person with knowledge of the matter said. 

 

NPCI did not respond to Business Standard’s request for a comment. 

 

The subsidiary is in its early stages. Teams at NPCI are supporting the entity’s function, it has been learnt. 

 

The setting up of NTSL signals a strategic move to scale up core digital infrastructure pipelines in the country, a second industry source said. 

 

“It boils down to the areas and functions in which NPCI wants to scale up. It remains to be seen which infrastructure components the entity will focus on first,” the person said. 

 

The authorised and paidup capital for NTSL is recorded at ₹10 lakh and ₹5 lakh, respectively. 

 

During the Global Fintech Fest 2025 (GFF), NPCI’s non-executive chairman and independent director, Ajay Kumar Choudhary, said that NTSL was about experimentation and breakthrough innovation. 

 

“We are excited to see NTSL emerge as a cradle for tech innovation in India, a space where bold ideas can be nurtured into scalable solutions for the digital economy,” he had said. 

 

Previously, NPCI had set up subsidiaries with distinct functions. 

 

They are NPCI International for the internationalisation of the UPI and RuPay network, NPCI Bharat BillPay for bill payments, and NPCI BHIM Services to expand digital payments domestically through the Bharat Interface for Money (BHIM). 

 

Apart from operating UPI, NPCI handles products such as the RuPay card network, National Financial Switch for ATM network, a National Automated Clearing House (NACH) for bulk transactions, Immediate Payment Service (IMPS).