The state-owned lender has also argued that transformation in the payments space can happen independent of the National Payments Corporation (NPCI) and could sew up a team of peer public lenders if the finance ministry eases its stance.
What Is NUE Licence For Retail Payments & How Is It Going To Change Digital Payments In India? indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
03 March 2021
The Tata Group is reported to have taken over State Bank of India and Bank of Baroda’s bid for a Reserve Bank of India (RBI) licence to set up a New Umbrella Entity (NUE) for retail payments in the country, the Economic Times reported.
The move to apply for a NUE licence is part of a concerted effort by the group to develop and roll-out its Super App, for a big entry in the online retail space and set up competition with Reliance and Amazon.
RBI is reported to have rejected the bids of state-run SBI and BoB for setting up the NUE, which has since been lapped up by Tata Group along with HDFC Bank and Kotak Mahindra Bank.
As digital payments in India continue to grow, several prominent business establishments in India including Reliance Industries, the Tata Group and digital payments major Paytm are reportedly in fray for setting up New Umbrella Entity (NUE) for retail payments. Moreover, several global tech giants including Facebook, Google and Amazon have tied up with Indian organisations for being a part of such an entity which would rival the likes of National Payments Corporation of India (NPCI). But what is the NUE licence that a number of big businesses are vying for? The Reserve Bank of India (RBI) came up with a framework for the pan-India umbrella entity for retail payments back in August 2020, wherein the central bank said that an entity must have a minimum paid-up capital of Rs 500 crore.
ETtech Morning Dispatch on March 2, 2021: How s it Co-WIN?
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We ll soon meet in your inbox. / Morning Dispatch
Good morning,
In January we reported that India’s vaccination drive got off to a poor start, thanks to glitches in the government’s Co-WIN portal. Yesterday, more than a month later, the drive was extended to some members of the general public for the first time, but the same problems persisted. It seems this issue could take the government months rather than weeks to resolve, which isn’t good news for anyone.
Elsewhere in today’s letter: