RBI extends deadline to apply for pan-India umbrella entity for retail payments till Mar 31

The Reserve Bank of India (RBI) on Friday extended the deadline for applying for setting up umbrella entity for pan-India retail payments till March 31 due to the coronavirus pandemic.

In August last year, the central bank had unveiled the framework for setting up umbrella entities for operating pan-India retail payments systems and invited applications from eligible companies by February 26, 2021.

"Requests have been received from various stakeholders including Indian Banks' Association for extending the timeline, keeping in view the COVID-19 related disruptions and inconveniences. It has been accordingly decided to extend the timeline for making the application up to March 31, 2021," the RBI said in a statement.

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As per the framework, the companies with a net worth of over Rs 500 crore will be eligible to set up an umbrella entity which among other things will be permitted to set up, manage and operate new payment systems in the retail space comprising ATMs, white label PoS, Aadhaar-based payments and remittance services.

The umbrella entity will be permitted to operate clearing and settlement systems for banks and non-banks; identify and manage relevant risks such as settlement, credit, liquidity and operational; and preserve the integrity of the system.

It will also be expected to monitor retail payment system developments and related issues in the country and internationally to avoid shocks, frauds and contagions that may adversely affect the system and/or the economy in general.

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