Reserve Bank of India (RBI)" width="300" height="225" />Reserve Bank of India (RBI)" width="300" height="225" />
The Reserve Bank of India (RBI) will set up a committee to scrutinise applications and give recommendations on new umbrella entity (NUE) licences, people aware of the development said. The five-member committee will be headed by RBI chief general manager P Vasudevan, they said.
NUEs will establish their own payment infrastructure to compete with National Payments Corp. of India (NPCI). The government hopes to build a settlement system similar to the unified payments interface (UPI) with the NUEs. The system will be focussed on small and medium enterprises, merchants and consumers. The RBI had in August 2020 issued guidelines for creating “for-profit NUEs”.
“The committee will be responsible for looking into several aspects of NUE, from the macroeconomic impact of such a step to the security risks,” said one of the persons cited above. “The committee’s recommendations will be taken into consideration before doling out the licences.”
The RBI didn’t respond to queries sent on Tuesday evening.
ET had first reported June 8 that the RBI had postponed the award of NUE licences.
