In a Press Release dated 10th February, 2020 the Reserve Bank of India (“RBI”) has issued the Draft Framework for authorisation of a pan-India New Umbrella Entity (NUE) for Retail Payment Systems (“Draft framework”) inviting comments and suggestions by 25th February, 2020.
Comments and suggestions must be addressed to the Chief General Manager, Department of Payment and Settlement Systems, Reserve Bank of India, Central Office, 14th Floor, Shahid Bhagat Singh Marg, Mumbai-400001, or by email.
The NUE will be a pan-India umbrella entity / entities focussing on retail payment systems. The entity will be a Company incorporated in India under the Companies Act, 2013.
A company authorised by Reserve Bank of India (RBI) under *Section 4 of the Payment and Settlement Systems Act, 2007 (“Act”) will be the NUE and thus will be governed under the provisions of the Act.
The draft framework lays down the fit and proper criteria, scope of activities, governance structure, business plan, capital requirements and procedure of application that has to be followed by the NUE.
For a detailed read of the draft framework, please refer to the hyperlink below.
*Section 4 of the Act : Payment system not to operate without authorisation : No person, other than the Reserve Bank, shall commence or operate a payment system except to operate under and in accordance with an authorisation issued without by the Reserve Bank under the provisions of this Act.
Source: Reserve Bank of India