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New umbrella entity for retail payments can be 'for-profit': RBI

The banking regulator is inviting applications form interested parties for forming the umbrella entity till February 26, 2021

online, digital, payments, mobile, app, card, credit, debit, pos

The new entity will also have to abide by the corporate governance norms along with ‘fit and proper’ criteria for persons to be appointed on its board

Subrata Panda Mumbai
The Reserve Bank of India (RBI) on Tuesday released the framework for establishment of a new umbrella entity for retail payments. This entity will be tasked with setting up, managing, and operating new payment systems in the retail space. It may operate as a ‘for-profit’ organisation, the RBI said. 

“The entity formed shall be a company incorporated in India under the Companies Act, 2013, and may be a ‘for-profit’ or a Section 8 Company as may be decided by it,” the RBI said.

According to the RBI guidelines, the entity will have minimum paid-up capital of Rs 500 crore, with no single

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First Published: Aug 18 2020 | 7:03 PM IST

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