{"id":4547,"date":"2021-03-21T17:01:59","date_gmt":"2021-03-21T11:31:59","guid":{"rendered":"https:\/\/yourcareerheights.com\/?p=4547"},"modified":"2021-03-21T17:06:14","modified_gmt":"2021-03-21T11:36:14","slug":"understanding-new-umbrella-entity-or-nue","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=4547","title":{"rendered":"Understanding New Umbrella Entity (NUE)"},"content":{"rendered":"
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\"\"<\/a>Reserve Bank of India (RBI) came up with a framework for the pan-India umbrella entity for retail payments back in August 2020.
\nThe RBI notification said that the objective of the framework is to set up pan-India umbrella entity or entities focusing on retail payment systems.
\nThe guidelines said that the RBI retains the right to approve the appointment of directors as also to nominate a member on the board of the umbrella entity.<\/h3>\n

Though cash remains the King in India, yet with usage of Smartphones the Digital transactions are increasing on daily basis. Digital transactions doubled in the last two years, faster than any major country outside China, and are forecast to reach $2 trillion in 2023. Such exponential growth hasn\u2019t been trouble-free, however, leading to concern about the wisdom of relying on a single payments system.<\/p>\n

To address the \u2018risk concentration\u2019 of only one platform and offer consumers more options, the<\/em> RBI in 2020 invited private companies to bid for a license to set up a new platform (New Umbrella Entity (NUE).<\/em><\/strong><\/p>\n

What are NUEs?<\/h4>\n

As envisaged by the RBI, an NUE will be a for-profit entity that will set-up, manage and operate new payment systems, especially in the retail space such as ATMs, white-label PoS; Aadhaar<\/span>-based payments and remittance services. In addition to this, they will develop new payment methods, standards and technologies as well as operate clearing and settlement systems.<\/span>
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