The Reserve Bank of India (RBI) on August 18, 2020 released a framework for setting up of a pan-India umbrella entity for retail payments systems.
Salient Features
As per the framework, the companies with a net worth of over 500 crore rupees will be eligible to set up an umbrella entity.
The entity will be permitted to set up, manage and operate new payment systems in the retail space comprising ATMs, White Label PoS, Aadhaar-based payments and remittance services.
This entity, to be incorporated under the Companies Act, 2013, would need to focus on retail payments systems.
The entity will operate clearing and settlement systems for participating banks and non-banks, identify and manage relevant risks, monitor retail payments system developments and related issues in the country and internationally.
(Source: The Hindu and AIR)
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