The central bank has put on hold a plan to allow new companies to create new digital payment platforms and end the dominance of the National Payments Council of India (NPCI) in online transactions.
The Reserve Bank of India (RBI) has banned A Payment Network Plan. The central bank has put on hold a plan to allow new companies to create new digital payment platforms and end the dominance of the National Payments Council of India (NPCI) in online transactions. Two people related to this matter said that the regulator has taken this decision due to data safety concerns.Also Read: TMKOC: Nattu Kaka’s condition after cancer, a shocking photo surfaced
At least six consortiums, led by Amazon, Google, Facebook and the Tata group, have entered into partnerships with companies such as Reliance Industries Ltd and ICICI Bank Ltd. In partnership with New Umbrella Entities (NUEs) applied for licenses. The Reserve Bank of India (RBI) had invited EoIs for the new payment network last year.
According to a Live Mint report, however, public sector lenders such as State Bank of India (SBI) and Union Bank were barred from taking license by the Finance Ministry as they were shareholders in NPCI.Also Read: EPFO rules are different regarding Employee Pension Scheme, account holders must pay attention
88% jump in digital payments
Let us tell you that in the financial year 2020-21, digital payments have increased by 88 percent to 43.7 billion transactions. The number of digital transactions in FY19 was 23 billion. Rapid growth in the digital payment system and the entry of new companies in this sector has led to a boom in transactions.
So took this step
One of the two people associated with the matter said on the condition of anonymity, RBI feels that the issue of data security related to foreign entities remains a major concern. So, have decided not to go ahead with the new license for now.Also Read: Reliance jio 598 rupee and 599 rupee recharge plan comparison
RBI’s move had to face criticism from the beginning of the bank unions and neither the public sector lenders were happy with their exclusion. Reuters reported in June that the All India State Bank of India (SBI) Staff Federation and UNI Global Union urged the RBI to scrap the licensing process and focus on strengthening the NPCI.
RBI bans master card
Let us tell you that last month RBI had banned the issuance of MasterCard. Now banks will not be able to issue Master Debit and Credit cards to new or old customers. Mastercard is a payment system operator authorized under the PSS Act to operate the card network in the country.Also Read: UIDAI Update: Change your name gender other details on aadhaar using self service update portal
According to a release issued by RBI, the company has violated RBI norms on storage of payment system data. That’s why RBI has decided to ban Mastercard. This restriction has been imposed under Payment Section 17 and Settlement System Act 2007.
