Reserve Bank of India has unveiled the framework for setting up of pan-India Umbrella Entity for Retail Payments. As per the framework, the companies with a net worth of over 500 crore rupees will be eligible to set up an umbrella entity which among other things 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.
The entity will be expected to monitor national as well as international developments so as to avoid shocks and frauds that may adversely affect the system and the economy in general.
Inviting applications by February 2021, the RBI said that the promoter/promoter group of the umbrella entity shall be owned and controlled by resident Indian citizens.
RBI said the application for setting up the umbrella entity should contain a detailed business plan covering the payment systems proposed to be set up and/or operated along with other documents to duly establish its experience in the payments ecosystem.