{"id":86589,"date":"2020-08-19T17:39:20","date_gmt":"2020-08-19T12:09:20","guid":{"rendered":"https:\/\/factly.forumias.com\/?p=16965"},"modified":"2020-08-19T17:39:20","modified_gmt":"2020-08-19T12:09:20","slug":"rbi-unveils-framework-for-retail-payments-entity","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-unveils-framework-for-retail-payments-entity\/","title":{"rendered":"RBI unveils framework for retail payments entity"},"content":{"rendered":"\n<p><strong>News:<\/strong> Reserve Bank of India(RBI) has released a \u2018Framework for Authorisation of Pan-India Umbrella Entity for Retail Payments\u2019.<\/p>\n\n\n\n<p><strong>Facts:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>In February 2020, RBI had proposed to create an alternative umbrella organisation for retail payments to prevent the monopoly of National Payment Corporation of India(NPCI).<\/li><\/ul>\n\n\n\n<p><strong>About the Framework:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>New umbrella entity(NUE): <\/strong>It<strong> <\/strong>shall be a company incorporated under the Companies Act, 2013 and may be a \u2018for-profit\u2019 or Non-profit company as decided by it.<\/li><li><strong>Paid up capital: <\/strong>The entity will have minimum paid-up capital of Rs 500 crore with no single promoter group holding over 40% investment in the capital.<\/li><li><strong>Functions:<\/strong><ul><li>It can set up, manage and operate new payments systems in the retail space comprising ATMs, white label PoS, Aadhaar-based payments and remittance services.<\/li><li>It will manage clearing and settlement systems for participating banks and non-banks and also monitor developments in the retail payment system both in India and abroad.<\/li><li>It will frame necessary rules and the related processes to ensure that the system is safe and sound and that payments are exchanged efficiently.&nbsp;<\/li><\/ul><\/li><li><strong>Corporate Governance: <\/strong>The entity<strong> <\/strong>has to follow corporate governance norms set by the RBI, the central bank retains the right to approve the appointment of directors and nominate a member on the entities\u2019 board.<\/li><\/ul>\n\n\n\n<p><strong>Additional Facts:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>NPCI:<\/strong> It is an umbrella organisation for operating retail payments and settlement systems in India.<\/li><li>It is an initiative of Reserve Bank of India (RBI) and Indian Banks Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.<\/li><li>It has been incorporated as a Not for Profit Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013).<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: Reserve Bank of India(RBI) has released a \u2018Framework for Authorisation of Pan-India Umbrella Entity for Retail Payments\u2019. Facts: In February 2020, RBI had proposed to create an alternative umbrella organisation for retail payments to prevent the monopoly of National Payment Corporation of India(NPCI). About the Framework: New umbrella entity(NUE): It shall be a company&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-unveils-framework-for-retail-payments-entity\/\">Continue reading <span class=\"screen-reader-text\">RBI unveils framework for retail payments entity<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[4151,394],"class_list":["post-86589","post","type-post","status-publish","format-standard","hentry","category-economy","tag-framework-on-retail-payments","tag-rbi","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700798619,"cached_date":1704855961},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86589"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86589\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}