The RBI is the country’s central bank and regulatory body, and its New Umbrella Entity (NUE) would permit companies to develop and operate alternate payment systems other than what is operated by the non-profit National Payment Corporation of India (NPCI), it said.
The for-profit NUE system proposed by the RBI intends to set a stage for competitors to the current non-profit system by promoting private players to operate alternate for-profit payment systems, it added.
In a bid to reduce concentration risks in the payments sector, RBI last year invited companies to forge New Umbrella Entities (NUEs) to create a payments network as a competitor the only processor NPCI public sector and private sector banks.
“We will like the Reserve Bank of India not to give up essential and infrastructural tasks related to currency, finance and banking to corporate entities, for them to run such essential infrastructure for profit, and entrenching their corporate power,” AISBISF general secretary Sanjeev Bandlish said in a statement.
NPCI and UPI are doing good work under RBI’s close regulation and monitoring and we are fully opposed to opening up parallel for–profits systems which would not be in the public interest, he added.