RBI publishes draft framework for NPCI like new pan India umbrella organization for retail payment systems

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RBI publishes draft framework for new pan India umbrella organization for retail payment systems

The central bank has invited comments on the draft framework from all stakeholders by February 25.

At present, National Payments Corporation of India (NPCI) is an umbrella organisation for retail payments systems.

Who Can Set Up The ‘New Umbrella Entity’ -

The RBI, in its draft rules, has suggested that the umbrella entity could be a for-profit or not-for-profit entity, owned and controlled by Indian residents.

1) Proposed umbrella entity can be ‘for profit’ and registered as a company under PSS Act 2007.

2) Entities eligible to apply as promoter / promoter group shall be ‘owned and controlled by residents’.

3) Minimum paid up capital should be Rs 500 crore and a minimum net-worth of Rs 300 crore shall be maintained at all times.

4) Promoters shall upfront demonstrate capital contribution of not less than 10 percent, that is, Rs 50 crore.

5) No single promoter can hold more than 40 percent. Promoter shareholding to be diluted to a minimum of 25 percent after five years.

6) Promoter shareholding to be diluted to a minimum of 25 percent after five years.

Like the NPCI, the new umbrella entity shall set-up, manage and operate new payment systems, especially in the retail space comprising but not limited to automated teller machines, white-label point of sale terminals, Aadhaar-based payments and remittance services. The entity shall also develop new payment methods, standards and technologies, monitor-related issues in the country and internationally, take care of developmental objectives like enhancement of awareness about the payment systems, the RBI proposed.

The banking regulator is seeking comments on the draft guidelines by Feb. 25 after which it will issue the final guidelines and accept applications from those wanting to set up such an organisation.

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Has Ambani signature all the way

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panchabhut wrote:

Has Ambani signature all the way

lol, but Indian Private companies should launch their own Credit Card company & UPI/IMPS like services.

USA have 5 or 6 Private Credit Card Companies, Brazil also have 2 or 3 Credit Card Companies.

umeed toh he Reliance, TATA, Kotak, HDFC jaise koi company isbare me soche, kyunki isse humare Indian Rupees ki value bhi strong hote ha.

Important baat yeh bhi ha yeh sab profitable business he agar sahi se business chala paye toh.

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pls tell us in simple terms
is this like mastercard/visa/rupay ?

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SARDARKHAN wrote:

pls tell us in simple terms
is this like mastercard/visa/rupay ?

RBI publishes draft framework for NPCI like new pan India umbrella organization for retail payment systems

Like the NPCI, the new umbrella entity shall set-up, manage and operate new payment systems, especially in the retail space comprising but not limited to automated teller machines, white-label point of sale terminals, Aadhaar-based payments and remittance services. The entity shall also develop new payment methods, standards and technologies, monitor-related issues in the country and internationally, take care of developmental objectives like enhancement of awareness about the payment systems.

currently NPCI operate ATMs (NFS), white-label POS, BBPS, RuPay Card, UPI, IMPS, Fastag, CTS, NACH, Bharat QR etc

new umbrella organization also set-up similar type new payment systems.

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SARDARKHAN wrote:

pls tell us in simple terms
is this like mastercard/visa/rupay ?

Kind of,it is like private player npci which may come with their own system(say jiopay cards with a tie-up with visa/mastercard).

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guest_999 wrote:

Kind of,it is like private player npci which may come with their own system(say jiopay cards with a tie-up with visa/mastercard).

Jiopay cards with a tie-up with visa/mastercard ?

wrong example.

if Jio or any company get retail payment system license then Jio or any other company maybe launch their own credit card payment network (competitor of visa/master/RuPay/amex/diners card).

new retail payment company also replicate IMPS & UPI. we will get one more option for money transfer.

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abhishek012 wrote:

Jiopay cards with a tie-up with visa/mastercard ?

wrong example.

if Jio or any company get retail payment system license then Jio or any other company maybe launch their own credit card payment network (competitor of visa/master/RuPay/amex/diners card).

new retail payment company also replicate IMPS & UPI. we will get one more option for money transfer.

Isn’t rupay also having a tie-up with diners/discover for international transactions? I think most cards in the world have to have a tie-up with visa/mastercard/discover/diner/amex for international compatibility.

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guest_999 wrote:

Isn’t rupay also having a tie-up with diners/discover for international transactions? I think most cards in the world have to have a tie-up with visa/mastercard/discover/diner/amex for international compatibility.

yes, card companies tie-up for international transactions only

and visa/mastercard never tieup with any other card companies in India because visa/mastercard have card clearing & settled payment business license in India.

Missing