Page 52 - Banking Finance November 2021

ARTICLE

Y Customers will be able to choose the payment mode Y Any new standard that this body creates will have to
they are most comfortable with. first be approved by the NPCI, but then it can be rolled
out throughout the digital payments ecosystem.
Issues with NPCI
Conclusion
Y There would be consequences to letting NPCI only entity
in handling the payment system. The framework for New Umbrella Entity by the RBI is a
welcome step in terms of opening up avenues for private
Y Any sort of monopoly results in market inefficiencies.
participation in developing the retail payment infrastructure
Y Having just one umbrella regulator, we will never be sure in India and introducing new technologies and systems to
if transaction costs are as low as they could be, or if the consumers at large. It could well lead to more synergies and
variety of product offerings available to us could be better. innovation in the fintech industry, thereby creating
Y Problem is that the NPCI is expected to both manage competition at the root level of the payment systems.
the digital payments industry as well as come up with
the frameworks necessary to foster innovation. By establishing a neutral and independent standards-setting
body, we can make sure that the system as a whole in our
Y When NPCI had just small products in its portfolio it was country evolves in the best traditions of digital infrastructure
able to perform both functions efficiently. adopted anywhere in the world. Only thing need to be
Y The effort of just keeping the system working seems to looked in this aspect is that the new entrants applying for
be taking a toll on NPCI's ability to develop the protocols the licenses should not be defeating the principles of
and standards that are needed to encourage innovation equality and fairness and maintain transparency in the
in this boom sector. charges and service rules. If this is achieved then India is
welcoming this alternative payment and settlement system
to the new Digital India.
Solutions
Y To create a separate and independent standards-setting References:
body. 1. The economic times
Y Such body would come up with the protocols and 2. The mint
standards required to foster innovation in the digital 3. RBI framework on NUE
payments space 4. Google search engine

5G spectrum auction unlikely before 2023

Indians may have to wait a little longer to experience the 5G technology as the spectrum auction to allot the air-
waves is unlikely to happen before 2023. According to internal consultations in the Department of Telecommunica-
tions, the auctions will be held in the last quarter of the financial year 2022-2023 (FY23), even as Telecom Minister
Ashwini Vaishnav has said the airwaves may be tendered by FY22-end. "According to the new calendar for spectrum
auctions, we are targeting the 5G tender around January-March 2023," an official said.

e-Shram: Over 1 crore informal workers registered

Over one crore unorganised workers have registered themselves at e-Shram portal, the labour ministry said. More
than 1 crore unorganised workers registered at e-Shram portal, which is India's first national database on unorganised
workers, the ministry said in a statement. The drive to facilitate registration of migrant workers at e-Shram portal
received huge attention since its launch on August 26, 2021, it added. In almost 24 days, over 1 crore workers have
registered at the portal, according to the statement.
This is the first-ever concentrated step towards generating a comprehensive database of the unorganised workers
from different sectors like construction, apparel manufacturing, fishing, gig and platform work, street vending, do-
mestic work, agriculture and allied, transport sector and so on.

52 | 2021 | NOVEMBER | BANKING FINANCE