New Umbrella Entity : The NPCI Rival
First understand What the NUE is? As per Draft framework released by RBI , NUE (New Umbrella Entity) for retail payment system is a company incorporated under companies act and authorised by RBI under Payment and Settlement Act. Why NUE? As of now, the government-owned National Payments Corporation of India (NPCI) is the sole umbrella body to facilitate retail payments which owns and operates the UPI Interface, the RuPay network etc. for settlement. But, the RBI feel that NPCI alone won’t be able to carry out all the volume of transactions in the retail segment and Government also feel that monopoly in this sector can be harmful. So, NUE will offer competition to NPCI and offer similar product like UPI and other payment modes. Steps taken by RBI for NUE The central bank Reserve Bank of India had released the framework for the authorisation of NUEs on August 18, 2020. Since then, many Private players in the Indian banking and payments landscape have formed consortium ...