According to latest reports, Global payment giants Visa and MasterCard are having second thoughts on their participation in RBI’s NUE.
Earlier, the two had confirmed their alliance via NUE route to compete against the National Payments Corporation of India’s UPI.
The second thoughts are due to conflict of interests among the global payment giants.
This is after the finance ministry raised concerns over the plans of SBI, HDFC Bank and Bank of Baroda to participate in the NUE race.
Moreover, the two participants are very cautious at a time when the competition is tough and challenging.
Currently, four consortiums are competing for the New Umbrella Entity.
This includes one comprising Amazon and Axis Bank and second one comprising Reliance Jio, Google, Facebook and Infibeam Avenues.
Further, Tata Group is leading the third one and the fourth one comprising Paytm and Ola.
However, a senior executive stated that the consortiums should first get the licence before approaching the problem.
The consortiums now have time till March 31 to submit their bids after the RBI extended the deadline last Friday.
Moving forward, the government aims to build a settlement system similar to Unified Payments Interface.
The focus of the system would be on small and medium enterprises, merchants and consumers respectively.
The RBI had also issued guidelines in August 2020 for developing a “for profit NUE”.
It requires players to disclose their plans of partnering when they submit their proposals for NUE.
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