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‘Framework for Authorisation of Pan-India Umbrella Entity for Retail Payments’

Published on August 21, 2020
Current Context: The Reserve Bank of India has released ‘Framework for authorisation of pan-India Umbrella Entity for Retail Payments’.
‘Framework for Authorisation of Pan-India Umbrella Entity for Retail Payments’
  • This new pan-India umbrella Entity will be set up with a capital of Rs 500 crore.
  • Under this, the entity which will be formed will perform the work of managing new payment systems like ATMs, Adhaar based payments, point of sale based payments.
  • The entity will set up standards for the various payment methods and will work to mitigate technology-related issues being faced in performing payments.
  • For this framework to be built in reality, the apex bank has invited applications from eligible companies by 26th Feb 2021. 
  • The final entity will be set up and the authorisation for the same will be given by the Board for Regulation and Supervision of Payments and Settlement Systems (BPSS).
  • The entity will belong to the Companies Act,2013 and will be authorized by RBI under section 4 of PSS (Payment and Settlement Systems) Act, 2007.
  • The eligible entities willing to apply as promoters of umbrella entity must be owned and controlled by resident Indian citizen under FEMA 1999.
  • Any entity having more than 25% paid-up capital, but less than 40% of umbrella entity will be given charge as a promoter. A promoter should make payment in advance which must be 10% of minimum capital. A net worth of Rs 300 crore must be maintained.
  • Static Part: 
    • HQ of RBI: Mumbai
    • Governor of RBI: Shaktikanta Das

Question: 

Q.1 Who among the following has to release a ‘Framework for authorisation of pan-India Umbrella Entity for Retail Payments’?
a. IRDAI
b. NITI Aayog
c. RBI
d. NABARD
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