20) Pan India entity for retail payments

Question 1

We already have a pan India entity for retail payments right ?

Answer 1

YESS it is NPCI . However RBI now wants to create an alternative umbrella organisation to prevent the monopoly

Question 2

So what are the plans for this new entity ?

Answer 2

It shall be a company incorporated under Companies Act, 2013 and may be a “For profit” or “Not for profit” company

The entity will have a min paid up capital of 500cr with no single promoter group holding >40% shares

Question 3

Details of NPCI ?

Answer 3

1) Current umbrella organisation for all retail payments and settlement systems
2) Initiative of RBI and IBA
3) It is a Not for Profit company under Companies Act of 1956

Question 4

So what will be the functions of the new entity ?

Answer 4

1) Can setup, manage and operate new payment systems in the retail space comprising ATMs, white label PoS, Aadhaar based payments
2) It will manage clearing and settlement systems for participating banks and non banks

Question 5

Governance structure ?

Answer 5

The entity has to follow corporate governance norms set by RBI
RBI retains the right to approve the appointment of directors and nominates a member on the entities board