Reserve Bank of India puts new payment network plan on hold

A plan to allow new entities to create digital payment platforms and end the National Payments Council of India’s (NPCI) dominance in online transactions has been put on hold by the regulator over data safety concerns, two people directly aware of the development said.

At least six consortiums, including those led by Amazon, Google, Facebook and the Tata group, applied for the so-called new umbrella entities (NUEs) licences, in partnership with companies such as Reliance Industries Ltd and ICICI Bank Ltd after the Reserve Bank of India (RBI) invited expressions of interest last year.

Public sector lenders such as State Bank of India and Union Bank were, however, barred by the finance ministry from seeking licences as they were shareholders in NPCI.