The Reserve Bank of India’s plans to set up a New Umbrella Entity (NUE) network has been stalled due to the lack of innovative proposals, according to deputy governor T Rabi Sankar. The NUE was intended to work as an alternative to the National Payments Corporation of India and reduce risks of overload on the Unified Payments Interface infrastructure. Several tech giants, including Facebook, Amazon, Google, and Flipkart, had applied for the NUE licence. However, Sankar said the proposals received were not innovative or infrastructural solutions. Digital payments in India have grown exponentially in recent years, and UPI processed a record 868.5 crore transactions worth INR 14.1 lakh crore in March 2023. The latest development comes at a time when digital payments in the country have grown by leaps and bounds over the last few years, thanks to UPI. In March 2023, UPI processed a record 868.5 Cr transactions worth INR 14.1 Lakh Cr.
With the Indian government in talks with multiple countries for accepting UPI payments and allowing cross-border transactions, UPI transactions are set to surge further in the coming times. The growth of digital payments in India, particularly through the Unified Payments Interface (UPI), has been significant in recent years. In March 2023 alone, UPI processed a record 868.5 crore transactions worth INR 14.1 lakh crore. The Indian government is also currently in talks with multiple countries to enable cross-border transactions using UPI, which is expected to further fuel its growth in the future. It seems that Amazon and Paytm have already partnered with several banks and financial institutions for the NUE license, and they are not alone in their pursuit of this license. Six conglomerates, including Facebook, Google, and Flipkart, have also applied for the NUE license. Despite the delay, the RBI governor has stated that the plan for the NUE license is still on.