The Reserve Bank of India (RBI) published draft framework to set up new pan-India New Umbrella Entity (NUE) for retail payment systems. It will be incorporated under the Companies Act, 2013 and will be given authorization by Reserve Bank of India (RBI) under Section 4 of the Payment and Settlement Systems Act, 2007 (PSS Act). RBI has invited comments on the draft framework from all stakeholders.Key Points:
i.Responsibility of NUE: The newly set up entity will manage and operate new payment system in the retail space comprising of but not limited to ATMs, White Label PoS; Aadhaar based payments and remittance services; develop new payment methods, standards and technologies; monitor related issues in the country and internationally; take care of developmental objectives.
ii.Eligibility for NUE’s promoter: The entity eligible to apply as promoter for the NUE shall be owned and controlled by residents with 3 years’ experience in the payments ecosystem as Payment System Operator (PSO) / Payment Service Provider (PSP) / Technology Service Provider (TSP). Any entity holding more than 25% of the paid-up capital of the NUE shall be deemed to be a Promoter.
iii.At present, National Payments Corporation of India (NPCI) is an umbrella organisation for retail payments systems.
About Reserve Bank of India (RBI):
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Governor– Shaktikanta Das
Deputy Governors– 4 (BP Kanungo, N S Vishwanathan, Mahesh Kumar Jain, Michael Debabrata Patra)