Pan-India body will also frame rules
The Reserve Bank of India (RBI) on Tuesday released a framework for setting up of a pan-India umbrella entity for retail payments systems.
This entity, to be incorporated under the Companies Act, 2013, would need to focus on retail payments systems, the RBI said.
The umbrella entity will set up, manage and operate new payments systems in the retail space comprising ATMs, white label PoS, Aadhaar-based payments and remittance services.
The entity will operate clearing and settlement systems for participating banks and non-banks, identify and manage relevant risks, monitor retail payments system developments and related issues in the country and internationally.
The RBI said it will be the responsibility of the entity to frame necessary rules and the related processes to ensure that the system is safe and sound, and that payments are exchanged efficiently. The entity will be permitted to participate in Reserve Bank’s payment and settlement systems, including having a current account with Reserve Bank, if required. The formation of the umbrella entity has been authorised under the Payment and Settlement Systems Act, 2007.
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