UPI developer NPCI posts Rs 2,876 crore revenue in FY24; profit rises 37% to Rs 1,137 crore

UPI developer the National Payments Corporation of India (NPCI) has reported significant financial growth for FY24, with revenues climbing to Rs 2,876 crore, a nearly 40% increase from the Rs 2,065 crore recorded in FY23.

NPCI saw its profits—referred to as surplus due to its non-profit status—rise by 37% to Rs 1,134 crore.

Founded in 2008 as a collaborative venture between the Reserve Bank of India (RBI) and the Indian Banks' Association, NPCI plays a pivotal role in overseeing India’s retail payment and settlement systems.

Apart from BHIM, NPCI also manages payment services such as IMPS, NACH, RuPay, AePs, FASTag, and BBPS.

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Diverse revenue sources

NPCI’s revenue streams are mainly derived from payment services, accounting for 94% of its total income, which amounted to Rs 2,693 crore in FY24. Other sources of revenue include network and certification fees, card fees, and membership fees.

NPCI’s overall income, including earnings from interest on deposits and government bonds, totaled Rs 3,279 crore for the fiscal year, marking a 42% growth 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 crore 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 operational expenses also saw a sharp increase in FY24. Total expenditures rose by 47%, reaching Rs 1,740 crore, compared to Rs 1,183 crore in the previous year. Marketing and cashback expenses accounted for nearly half of this expenditure, amounting to 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 Rs 151 crore in revenue and Rs 40 crore in net profits for FY24.

NIPL focuses 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 utility bill payments across various payment platforms in India.

NBBL has become a critical player in the utility payments sector, connecting consumers and billers through third-party apps, thereby expanding NPCI's influence in the growing digital economy.