Page 49 - Banking Finance November 2021

ARTICLE

RISE OF ALTERNATIVE

PAYMENT SETTLEMENT

SYSTEM - NEW

UMBRELLA ENTITY

(NUE)

Introduction due to the work done by RBI, NPCI, Banks, Fintechs and the
entire ecosystem. Banks have been investing heavily in
The concept of 'Be Digital , Live Digital' is not something
infrastructure and technology to support payment products
surprising for India and its 132 million population ever since
including RTGS, NEFT, UPI, IMPS, AEPS, BBPS etc. This has
the demonetization happened. It was then the concept of
improved the life of retail customers with multiple options
digital payments took the center stage and is now alltime
being available at low costs. Smaller banks have not been
popular. Its use was increased to three - folds with the
able to make payment business profitable.
advent of COVID -19 Pandemic in the country. Actually this
pandemic taught us how much we are dependent on Digital
platform for monetary transactions. The success of payment RBI has come up with New Umbrella Entity for Retail
payments in the month of August 2020 to de-risk the
platforms like PayTM , Google Pay , Phone Pe etc. are all
the result our belief and regular dependency on these digital dependency on NPCI. RBI shall authorize these NUEs under
platforms that as per a report , India will surpass the volume Section 4 of the Payment and Settlement Systems Act
of digital transactions of $ 2 trillion by 2022. (PSSA), 2007. The objective of the notification was to set up
a Pan India entity for focusing on retail payments. In this
Payment ecosystem has grown massively in the last decade article we will look into the features of the NUE and their
relevance in the current context.
About the author
Eligibility :

Ashutosh Pande Any promoter or group who has an experience of three
Union Bank of India years in the payment ecosystem as an operator, service
Staff Training Center provider, or technology service provider may apply for New
Bhubaneshwar Umbrella Entity (NUE).

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