RBI issues framework for retail payment systems; Invites applications from companies

RBI issues framework for retail payment systems; Invites applications from companies

Let’s Start this Interesting Article Shared on DesiNew.xyz

(Representative image)

Mumbai: Reserve Bank on Tuesday prepared the framework for the establishment Umbrella institutions Invited applications for and from all India retail payment system operations Eligible companies By 26 February, 2021.
According to the framework, companies with total assets of more than Rs 500 crore will be eligible to set up an umbrella unit, which will be allowed to manage, operate and operate, among other things. New payment system ATMs include ATM, White Label PoS, Aadhaar-based payment and remittance services.
The central bank press release stated, “The Reserve Bank invites applications for the umbrella unit, which will be submitted in the prescribed form (Form A) by the conclusion of business on February 26, 2021.”
The umbrella unit will be allowed, among other things, to operate a clearing and settlement system for banks and non-banks; Identification and management of relevant risks such as settlement, debt, liquidity and operations; And maintaining the integrity of the system.
It will also be expected to be monitored Retail payment system To avoid shocks, frauds and contagion, development and related issues at the country and internationally, which may adversely affect the system and / or economy in general, RBI said.
It states that all residents eligible to apply as promoter / promoter group of umbrella unit will be owned and controlled by Indian citizens.
In case of any FDI in the applicant unit, it should be called FEMA (Foreign Exchange Management Act), And necessary approval from the competent authority.
Guidelines on ‘fit and proper’ requirements for promoters / promoter groups are also detailed.
The guidelines state, “The minimum paid-up capital in the umbrella unit will be Rs 500 crore. No promoter / promoter group will have more than 40 percent investment in the capital of the umbrella unit.”
Promoters or promoter groups should demonstrate a capital contribution of Rs 50 crore – not less than 10 percent at the time of applying for setting up of an umbrella unit.
The remaining capital will be secured at the time of commencement of business / operations.
It further stated that promoter / promoter group shareholding can be diluted to a minimum of 25 percent 5 years after the commencement of business of the umbrella unit.
However, as per the guidelines, a minimum net worth of Rs 300 crore should be maintained at all times.
The RBI stated that the application to set up an umbrella unit should have a detailed business plan covering the payment system, duly established and / or operated, along with other documents to establish its experience in the payment ecosystem.
The Reserve Bank of India said that processing will be done only after the last date of receipt of applications. Reserve Bank of India.
Applications will be scrutinized by an external advisory committee (EAC).
The Board of Regulation and Supervision of Payment and Settlement Systems (BPSS) will be the final authority on the issuance of authorization to establish umbrella units / entities.
RBI will try to complete the process within a period of six months.

STAY TUNED WITH US FOR MORE INTERESTING CONTENT ONLY ON DESINEW.XYZ

Leave a Reply

Your email address will not be published. Required fields are marked *