New Umbrella Entity (NUE) guideline by RBI, Competition at What Cost ?

With the #NewUmbrellaEntity (NUE) guideline by #RBI. I think the cost of transaction/business will increase for Banks and other PSPs as they would like to partner with more than one entity as back up and as per their Business Continuity Management (BCM) policy.

For e.g NPCI + X + Y etc. And I am sure each entity will have a certain minimum number or volume of transactions commitment from their Bank/FI partners.

Since the NUE can be either a for Profit or a Section 8 company, it will have a different impact on the pricing and ultimately the market will decide the price/transaction. As this cost will move through the entire value chain, adding to the final MDR or any other support fee.

NPCI is a Section 8 and others can be for-profit, it definitely won’t be a level playing field for all. I am sure #NPCI may demand to change their legal structure as well. Ultimately, resulting in a higher cost per transaction, as it’s market-driven now.

We definitely need competition as it has its own benefits, but #AtWhatCost” is the question. We are still trying to spread digital payments to all segments of the society than only restricted to a few advanced customer segments.

An #SRO (Self Regulatory Organisation) is a welcome move to keep a check.

For NUE Document and Linkedin discussion on this, please visit –

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