RBI Moots Norms To Set Up New Retail Payments System
[ By Bobby Anthony ]The Reserve Bank of India (RBI) has proposed a draft framework to set up a new umbrella entity (NUE) focused on retail payments system, along the lines of National Payments Corporation of India (NPCI).According to the RBI, the new entity would be a company incorporated in India under the Companies Act, 2013, with a minimum paid-up capital of Rs 500 crore and no single...
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The Reserve Bank of India (RBI) has proposed a draft framework to set up a new umbrella entity (NUE) focused on retail payments system, along the lines of National Payments Corporation of India (NPCI).
According to the RBI, the new entity would be a company incorporated in India under the Companies Act, 2013, with a minimum paid-up capital of Rs 500 crore and no single promoter or promoter group would hold more than 40% investment in the capital.
According to the RBI, the promoter or promoter group shareholding would be diluted to a minimum of 25% after five years from the commencement of business of the NUE. A minimum net worth of Rs 300 crore would have to be maintained at all times, it said.
The proposed entity would set up, manage as well as operate a new payments system, especially in the retail space, comprising of, but not limited to ATMs, White Label PoS, Aadhaar-based payments and remittance services.
It would also be responsible for monitoring retail payments system developments and related issues in the country and internationally to avoid shocks, frauds and contagions that may adversely affect the system.
The proposed entity would have to fulfill norms of corporate governance along with ‘fit and proper’ criteria for persons to be appointed to its board. The RBI will have the right to approve appointment of its directors and also nominate a member to its board.
