New umbrella entities will be set up for profit entities that will manage payments in the retail space.
According to the RBI guidelines, these private entities can offer a host of retail payment services, including setting up of ATMs, offering white-label, point of sale terminals, Aadhaar-based payments, remittance services, and develop newer payment methods.
RBI has introduced NUEs to end the so-called monopoly of NPCI. The central bank also noted that during the pandemic, with people spending more time at home the usage of e-commerce has increased, and there’s been a significant rise in the incidence of internet fraud, cyber-crimes.
The letter urged the central bank to scrap the “whole process of NUE licensing” and focus on strengthening the domestic payments group, NPCI, which operates as a non-profit.
Sharat Chandra, industry expert and a blockchain and emerging tech evangelist believes that the grounds of opposition, by UNI Global Union, IT for Change, Joint Action Committee…