[vishnugupta]

RBI recently issued a circular inviting companies to build a retail payments network, in parallel to UPI [1], under New Umbrella Entity (NUE).

Two key aspects of NUE are, it could be a for-profit, and it'll be governed by India's FDI rules, meaning foreign investments are allowed and could even be encouraged as FDI rules get relaxed.

Both these are in direct contrast to NPCI's charter which is a not-for-profit and entirely owned by Indian entities. In fact NPCI is a quasi government organisation, owned by a combination of RBI and Indian banking association.

Google (through its India subsidiary) has already applied for building/operating an NUE, and I won't be surprised if Facebook has done it too.

I just hope that 20 years down the line we won't end up with a fragmented quagmire with half a dozen payment networks each of which don't talk to anyone else. UPI solved a huge problem of interoperability and it'll be a shame if its seamlessness is squandered away.

[1] https://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=3832

[wtmt]

> Both these are in direct contrast to NPCI's charter which is a not-for-profit and entirely owned by Indian entities.

By Indian entities, if you do include Citibank and HSBC (local arms), then yes. The promoters are private and public banks.

> In fact NPCI is a quasi government organisation, owned by a combination of RBI and Indian banking association.

It's promoted by RBI, but not really owned by it. The ownership lies with the consortium of private and public banks.