The RBI has notified the “Framework for authorisation of pan-India Umbrella Entity for Retail Payments” after due deliberations on the draft framework which was released was public comments on February 10, 2020.
Under the Payment and Settlement Systems Act, 2007, the RBI has the exclusive power to commence, operate or authorize a payment system in India. The umbrella entity to be set up under the framework shall be a “for-profit” or Section 8 company, authorized by the RBI and governed by the provisions of the Payment and Settlement Systems Act, 2007.
The promoters/promoter group entities shall conform to the “fit and proper” criteria and shall be owned and controlled by resident Indian citizens. Additionally, the umbrella entity shall have a minimum paid-up capital of Rs. 500 crores, of which at least 10% shall be contributed by the promoters/promoter group entities at the time of making an application for setting up of the umbrella entity.
All applications should be sent in the prescribed Form – A before the close of business hours on February 26, 2021.