Indian Banks Association (IBA), which is functioning as a facilitator to set up the new entity, is understood to have approached the Infosys founder to take over the new responsibility, a source close to the development said.
"IBA has approached Narayana Murthy to join the (NPCI) board. He has agreed to join the board," the source told PTI.
Though, Narayana Murthy will not be directly involved in the operations of the company, he will guide the board on crucial operations, the source said.
Another former Infosys top executive, Nandan Nilekani had recently joined the government to head the Unique Identity Card project of the UPA government.
NPCI, which was first mentioned in the 2005-08 vision document of the central bank, is being set up to segregate all retail payment activities.
This, however, excludes, real time gross settlement (electronic) transactions, which will continue to be handled directly by the apex bank