{"id":4840,"date":"2023-01-08T02:30:27","date_gmt":"2023-01-07T21:00:27","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=4840"},"modified":"2025-03-27T02:44:37","modified_gmt":"2025-03-26T21:14:37","slug":"what-is-new-umbrella-entity-nue","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-new-umbrella-entity-nue\/","title":{"rendered":"What is New Umbrella Entity (NUE)?"},"content":{"rendered":"<h2><strong>Why in news?<\/strong><\/h2>\n<ul>\n<li>Six groupings, which included Facebook, Google, Amazon, Flipkart and others, had applied for NUE licences and all of them have fallen short of the RBI&#8217;s expectations.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong>What is New Umbrella Entity (NUE)?<\/strong><\/h3>\n<ul>\n<li>As envisaged by the RBI, an NUE will be a non-profit entity that will set up, manage and operate new payment systems, especially in the retail space such as ATMs, white-label PoS; Aadhaar-based payments and remittance services.<\/li>\n<li>The entity formed shall be a company incorporated in India under <strong>the Companies Act, 2013.\u00a0<\/strong> Currently, the umbrella entity for providing retail payments systems is NPCI, which is a non-profit entity, owned by banks.\u00a0<\/li>\n<li><strong>Promoters:<\/strong> A promoter will hold at least 25% and up to 40% of the operator. Only those entities that are owned and controlled by Indian citizens with at least <strong>three years of experience<\/strong> in the payments segment can become promoters of NUEs.\u00a0<\/li>\n<li><strong>Foreign investment:<\/strong> Foreign companies can own a maximum of 25%, so are teaming up with local players.\u00a0<\/li>\n<li><strong>Capital required:<\/strong> According to the RBI guidelines, the entity will have <strong>minimum paid-up capital of Rs 500 crore, <\/strong>with no single promoter group holding over 40 per cent investment in the capital.\u00a0<\/li>\n<li><strong>Governance structure: <\/strong>The new entity will have to abide by corporate governance norms and the \u2018fit and proper\u2019 criteria for persons to be appointed to the board.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is Aadhar?<\/strong><\/h3>\n<p>Aadhaar is a 12 digit individual identification number issued by the Unique Identification Authority of India on behalf of the Government of India.The number serves as a proof of identity and address, anywhere in India.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/economictimes.indiatimes.com\/industry\/banking\/finance\/reserve-bank-of-india-puts-on-hold-nue-licensing\/articleshow\/96803826.cms\" target=\"_blank\" rel=\"nofollow noopener\"><u>Reserve Bank of India puts on hold NUE licensing.<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As envisaged by the RBI, an NUE will be a non-profit entity that will set up, manage and operate new payment systems, especially in the retail space such as ATMs, white-label PoS; Aadhaar-based payments and remittance services.<\/p>\n","protected":false},"author":5,"featured_media":4841,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-4840","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=4840"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4840\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/4841"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=4840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=4840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=4840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}