Amazon, ICICI Bank, Axis Bank & Others To Present Joint NUE Proposal To RBI
Amazon, along with ICICI Bank, Axis Bank and Visa, will reportedly present a proposal to the RBI for setting up a New Umbrella Entity (NUE). Last year, RBI announced that private entities, subject to certain requirements, would be eligible to apply for an NUE license. An NUE has been envisaged as an entity with functions similar to the Indian government-owned NPCI which owns and operates the UPI interface as well as the RuPay network, along with the wider retail and payments settlement system in the country.
According to ET, which first reported the development, the Amazon-ICICI-Axis consortium also features Indian merchant payments unicorn Pine Labs and Indian online payment gateway Billdesk. The RBI had listed February 26, 2021, as the last date for receiving proposals for the NUE license.
Unlike NPCI, an NUE could be a for-profit entity. They will be allowed to set up, manage and operate new payment systems, especially in the retail space, comprising but not limited to regular and white-label ATMs, PoS devices and Aadhaar-based payments and remittance services. They can also develop new payment methods, standards and technologies and monitor related issues within the country and internationally.