New Delhi: The Reserve Bank of India (RBI) wants to create a separate digital payment platform as an alternative to the National Payment Corporation of India (NPCI), in view of the increasing digital payments in the country. Private companies will create such platforms. Hence, the consortium of Tata Sons, Paytm and Amazon (Amazon), etc. are in the race to build the platform.
All these companies want to get the New Umbrella Entity (NUE) license from RBI for the platform. Through this license, they will be able to create a separate digital payment platform as an alternative to NPCI in the country. RBI has extended the last date for filling the application for NUE till 31 March 2021. Earlier, the last date of application was 26 February 2021.
So is the need
Just as NPCI is controlling other payment systems like UPI, IMPS, NEFT in the country, similarly the New Umbrella entity will also create its new payment system. The government and RBI believe that NPCI alone will not be able to control the increasing number of digital payments in the coming times. NUE will take on NPCI. At the same time, through the new umbrella entity, RBI wants to end cash transactions and entry of new players in the digital payment system. With this, the digital payment will be completely transparent and through this, tax evasion can also be monitored due to all types of payments.
Companies entered the field through consortium
Tata Sons has applied in association with HDFC Bank (HDFC Bank), Kotak Mahindra Bank, MastCard, Bharti and PayU.
Amazon (ICICI Bank), Axis Bank, Pine Labs, Billdesk and Visa Card (Visa Card) have formed and applied for it by consortium.
Paytm, IndusInd Bank, Ola Financials have applied together with some other companies.