Page 35 - Banking Finance December 2021

ARTICLE

related issues in the country and internationally to avoid
shocks, frauds and contagions that may adversely affect
the systems and the economy in general
Y To fulfill its policy objectives and ensure that principles
of fairness, equity and competitive neutrality are applied
in determining participation in the system, frame
necessary rules and the related processes to ensure that
the system is safe and sound and that payments are
exchanged efficiently
Y To carry on any other business as suitable to further
strengthen the retail payments ecosystem in the
country. It is expected that the umbrella entity shall
offer innovative payment systems to include hitherto
excluded cross section of the society and which enhance
"Application for Umbrella Entity addressed to the Chief
access, customer convenience and safety and the same
General Manager, Department of Payment and Settlement
shall be distinct yet interoperable
Systems, Central office RBI Mumbai. The application will be
Y It should interact and be interoperable to the extent taken up for processing only after the last date of receipt of
possible with the systems operated by NPCI applications, in order of their receipt at the RBI. Scrutiny of
Y The umbrella entity may be permitted to participate in applications will be undertaken by an External Advisory
Reserve Bank's payment and settlement systems, Committee (EAC). The EAC will submit its recommendations
including having a current account with Reserve Bank, to the RBI.
if required
Board for Regulation and Supervision of Payment for setting
The NUE shall conform to the norms of corporate up umbrella entity RBI will endeavor to complete the
governance along with "fit and proper" criteria for persons process within a period of six months.
to be appointed on its board. The RBI retains the right to
approve the appointment of directors as also to nominate RBI has set a deadline of March 31 for firms to submit their
a member on the Board of the NUE. applications for setting up NUEs. The Idea of NUE floated
by the Reserve Bank Of India to create an alternate
Business Plan: The application for setting up the umbrella mechanism to the existing National Payment Corporation
entity shall contain a detailed business plan covering the of India(NPCI). Entities owned and controlled by Indian
payment system proposed to be set up and operated along citizens with at least 3 years of experience in the payments
with other documents to duly establish its experience in the segment can become promoters of NUEs.
payments ecosystem. The plan shall include technology,
security features, market analysis/ research benefit, if any Private companies are queueing up to set up NUEs.
of such payment systems, operational structure of the Reliance, Tata, Amazon and Paytm companies are in line to
payment systems, time period for setting up the payment set up new umbrella entities for payment systems. Reliance,
systems and proposed scale of operation etc, A proposed Facebook and Google are planning to apply as a consortium.
organizational strategy in terms of fulfilling its responsibility Tata group joined hands with HDFC bank, Kotak Mahindra
as an umbrella entity shall also be given in the business plan. Bank, Master Card and Bharti Airtel. Amazon has tied up
The umbrella entity shall commence business / operation with Visa, ICICI Bank, Axis Bank and fintech startups, Bill
within a time of 6 months, extendable to a maximum of one Desk and PineLabs for the NUE licence.
year, if required from the date of "in-principle approval"
Referance :
The application shall be submitted in an envelope RBI circular, Various article of magazines. T

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