{"id":15991,"date":"2020-08-19T03:28:18","date_gmt":"2020-08-19T03:28:18","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=15991"},"modified":"2020-08-19T03:28:18","modified_gmt":"2020-08-19T03:28:18","slug":"rbi-releases-framework-for-new-umbrella-entity-for-retail-payments","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=15991","title":{"rendered":"RBI releases framework for new umbrella entity for retail payments"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2059247\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-676.jpg\" alt=\"No single promoter shall have more than 40% investment in the capital of the NUE.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2059247\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-676.jpg\" alt=\"No single promoter shall have more than 40% investment in the capital of the NUE.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2059247\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/1-676.jpg\" alt=\"No single promoter shall have more than 40% investment in the capital of the NUE.\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/08\/1-676.jpg 660w, https:\/\/images.financialexpress.com\/2020\/08\/1-676-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/08\/1-676-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/08\/1-676-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/08\/1-676-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/08\/1-676-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/08\/1-676-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">No single promoter shall have more than 40% investment in the capital of the NUE.<\/span><\/figure>\n<\/div>\n<p>The Reserve Bank of India (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>) on Tuesday released the final framework for authorisation of a new umbrella entity (NUE) for retail payments, following the draft released on February 10.<\/p>\n<p>The guidelines demand that applicants have at least three years of experience in the payments space and a minimum paid-up capital of Rs 500 crore.<\/p>\n<p>At present, only National Payments Corporation of India (NPCI), a not-for-profit company, performs this role.<\/p>\n<p>The NUE could choose to be a for-profit entity or a not-for-profit as defined under Section 8 of the Companies Act.<\/p>\n<p>The systems that it develops will be expected to interact and be interoperable, to the extent possible, with the systems operated by NPCI.<\/p>\n<p>No single promoter shall have more than 40% investment in the capital of the NUE.<\/p>\n<p>They shall upfront demonstrate capital contribution of not less than 10% at the time of making an application for setting up of the umbrella entity.<\/p>\n<p>The balance capital shall be secured at the time of commencement of business. The promoter shareholding can be diluted to a minimum of 25% after five years of the commencement of business of the umbrella entity.<\/p>\n<p>A minimum net-worth of Rs 300 crore shall be maintained at all times.<\/p>\n<p>The entity will be entitled to set up, manage and operate new payment systems in the retail space such as ATMs, white label PoS, Aadhaar-based payments and remittance services.<\/p>\n<p>They can also operate clearing and settlement systems for participating banks and non-banks.<\/p>\n<p>\u201cThe umbrella entity may be permitted to participate in Reserve Bank\u2019s payment and settlement systems, including having a current account with Reserve Bank, if required,\u201d the central bank said in the notification.<\/p>\n<p>Applications for setting up an NUE must reach the RBI by February 26.<\/p>\n<p>The umbrella entity shall begin operations within six months to one year from the date of \u2018in-principle approval\u2019.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/rbi-releases-framework-for-new-umbrella-entity-for-retail-payments\/2059236\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>No single promoter shall have more than 40% investment in the capital of the NUE. The Reserve Bank of India (RBI) on Tuesday released the final framework for authorisation of a new umbrella entity (NUE) for retail payments, following the draft released on February 10. The guidelines demand that applicants [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15992,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-15991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/1-676.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/15991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15991"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/15991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/15992"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}