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The Reserve Bank of India (RBI) recently released the Framework for Authorisation of Pan-India Umbrella Entity for Retail Payments. The objective of the guideline is to define the framework for entities interested to get into the business across eligibility, capital requirements, scope of services that the new proposed entity may be involved in and governance requirements.
It additionally provides a perspective on how the new umbrella entity (NUE) can opt to be a for-profit entity. According to the guidelines, the capital requirement for the business is INR 500 crore, with a requirement that the net worth shall never fall below INR 300 crore and that the applicant shall evidence availability of INR 50 crore at the time of making an application. While this initiative by the RBI represents a great opportunity, it also poses challenges, which could limit opportunity.
In the third volume of our Financial Services Risk Insights, we elucidate these challenges for potential business aspirants.
We hope you find this publication interesting.
