CURRENT AFFAIRS

Detailed explanation-1: -Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), will be the final authority on issuing authorisation for setting up umbrella entity / entities. Reserve Bank will endeavour to complete the process within a period of six months.

Detailed explanation-2: -A key stakeholder in this digital payment journey, the National Payments Corporation of India (NPCI, an umbrella organisation for operating retail payments and settlement systems), has been at the helm of supporting digital transactions.

Detailed explanation-3: -The five-member committee will be chaired by RBI chief general manager P Vasudevan. The New Umbrella Entities will set up their own payment infrastructure to compete with the National Payments Corp. of India (NPCI).

Detailed explanation-4: -What are NUEs? As envisaged by the RBI, an NUE will be a non-profit entity that will set-up, manage and operate new payment systems, especially in the retail space such as ATMs, white-label PoS; Aadhaar-based payments and remittance services.

Detailed explanation-5: -RBI has accorded regulatory approval to National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) in June 2019 for formation of Umbrella Organization (UO) for the UCB Sector. The approval inter-alia permits UCBs to subscribe to capital of the UO on voluntary basis.