The Reserve Bank of India (RBI) is thought to have put on hold licensing of the New Umbrella Entity (NUE) network, a fintech institution intentionally as a rival to the National Payments Corporation of India (NPCI). Six alliances, which included Facebook, Google, Amazon, Flipkart, and others, had functional NUE licenses.
The regulator will not fund permission to any of the six consortiums to start a business as all of them have dropped short of the RBI’s expectations, said people accustomed to white matter.
“It looks like none of the claimants have proposed anything novel or a great technology breakthrough that would take made RBI happy,” said one of the persons. “Nearly all of the plans were analogous to that of the NPCI, which app prepares not galvanize the RBI.”
NPCI, well-known by the RBI and banks, runs the Unified Payments Boundary (UPI) and other payment systems. A Reserve Bank spokesperson prepared not to apply to queries.
NUEs was theoretically set up and operated a new retail digital payment system besides man managing and settlement systems that can be an alternative to the bank-promoted NPCI.
The applicants encompassed a consortium of Facebook, Google,d SoHum Bharat, sideways with Jio Platforms. The Tata Group expressed interest in an overtone with Kotak Mahindra Bank, HDFC Bank, Airtel Digital, Flipkart, and Masand card besides PayU. Ecommerce giant Amazon sideways with ICICI Bank, Axis Bank, Visa, Pin, and e Labs then BillDesk harmed another group while Paytm had up a partnership by witha Financial, Policybazaar besides IndusInd Bank.
An NUE liclicenses predictable to help the participating entity gain greater self-sufficiency in processing digital expenditures in India. The license would help start a firm presence in the financial services network through value-added lending and cover services.