Page 33 - Banking Finance December 2021
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ARTICLE







         NEW UMBRELLA



         ENTITY - A BOON



         FOR RETAIL



         PAYMENT SYSTEM
















         I     n India at present retail payment system is managed  systems. Such entity shall be a company incorporated in


                                                              India under the Companies Act2012 and may be a 'for-profit,
               by NPCI. NPCI is a non-profit entity, owned by banks.
                                                              or a section 8 Company as may be decided by it. There is an
               NPCI operates settlement systems like UPI, AEPS,
               RUPAY. Fastag  etc. To enhance retail payment system
                                                              fintechs and technology providers for NUE. The regulator's
          RBI has planned to allow other entities to set up umbrella  active collaboration among banks, payment banks, and
          entities for payments systems. New Umbrella Entity is an  intent was to create a parallel to the National Payment
          non-profit entity that will set-up manage and operate new  Corporation of India (NPCI). New Umbrella entity will be able
          payment systems especially in the retail space such as ATMs,  to operate their own clearing and settlement systems,
          white-label PoS, Aadhaar-based payments and remittance  establish new standards and technologies and develop
         services.                                           innovative new payment systems that enhance customer
                                                             access, convenience and safe. All NUEs will be interoperable
         In August 2020, the reserve Bank of India came out with a  with the NPCI.
         framework of authorization of a pan-India new umbrella
         entity (NUE) for retail payments. Main objective to set-up  The umbrella entity shall be ac Company authorized by RBI
         pan -India new umbrella entities focusing on retail payment  under Section 4 of the PSS Act, 2007. It shall be governed
                                                             by the provisions of the PSS Act and other relevant statutes
                                                             and directives, prudential regulations and other guidelines/
                               About the author              Instructions.


                        Prabhat Singh Suman                  Eligibility : All entities eligible to apply as promoter /
                        Union Bank of India                  promoter group of the umbrella entity shall be owned and
                        Staff Training Center                controlled by resident Indian Citizens The rules / Regulations
                        Bhubaneshwar
                                                             framed under the Foreign Exchange Management

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