{"id":3534,"date":"2021-03-22T06:44:06","date_gmt":"2021-03-22T06:44:06","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3534"},"modified":"2021-03-22T06:44:09","modified_gmt":"2021-03-22T06:44:09","slug":"extended-time-for-authorisation-under-umbrella-entity-of-retail-payments","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/extended-time-for-authorisation-under-umbrella-entity-of-retail-payments\/","title":{"rendered":"RBI Extends Time Limit for Authorisation under Umbrella Entity of Retail Payments"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently the Reserve Bank of India\n(RBI), by way of Press Release No 2020 \u2013 2021\/ 1161, issued on 26.02.2021, has\ndirected an extension in the Time Limit for Authorisation under Umbrella Entity\nof Retail Payments. The said framework was released by the apex bank on\n18.08.2020. <\/p>\n\n\n\n<p>In this learning blog, we will discuss\nin depth the concept of Authorisation under Umbrella Entity of Retail Payments,\ntogether with the new extended time period and the need for the same.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a92f445f46\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a92f445f46\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/extended-time-for-authorisation-under-umbrella-entity-of-retail-payments\/#Concept_of_Authorisation_under_Umbrella_Entity_of_Retail_Payments\" title=\"Concept of Authorisation under Umbrella Entity of Retail\nPayments\">Concept of Authorisation under Umbrella Entity of Retail\nPayments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/extended-time-for-authorisation-under-umbrella-entity-of-retail-payments\/#Reasons_for_Extension_of_Time_Limit_for_Authorisation\" title=\"Reasons for Extension of Time Limit for Authorisation\">Reasons for Extension of Time Limit for Authorisation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/extended-time-for-authorisation-under-umbrella-entity-of-retail-payments\/#New_Extended_Time_Limit\" title=\"New Extended Time Limit\">New Extended Time Limit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/extended-time-for-authorisation-under-umbrella-entity-of-retail-payments\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/extended-time-for-authorisation-under-umbrella-entity-of-retail-payments\/#Official_Notification_Passed_by_RBI\" title=\"Official Notification Passed by RBI\">Official Notification Passed by RBI<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Authorisation_under_Umbrella_Entity_of_Retail_Payments\"><\/span>Concept of Authorisation under Umbrella Entity of Retail\nPayments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the framework, all the companies which are having a net\nworth of over Rs. 500 crore will be qualified to set up an umbrella entity and\nwill be allowed to set up, manage, and operate new payment mechanisms in the\nretail space inclusive of ATMs (Automated Teller Machines), white label POS,\nAadhar based payments, and remittance services.<\/p>\n\n\n\n<p>Further, the umbrella entity will be allowed to operate clearing and\nsettlement mechanisms for both banks and non-banks. Also, these entities will\nbe permitted to identify and manage pertinent risks, such as settlement, liquidity,\ncredit, and operational, and will be responsible forpreserving the integrity of\nthe system.<\/p>\n\n\n\n<p>Moreover, it will be expected to monitor and supervise retail payment system developments and concerned issues, both in the country and internationally, to dodge shocks, frauds, and contagions, which may adversely affect the system and the economy in general.<\/p>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/rbi-relaxes-norms-for-investment-by-fpi-in-defaulted-bonds\/\">RBI Relaxes Norms for Investment by FPI in Defaulted Bonds<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_Extension_of_Time_Limit_for_Authorisation\"><\/span>Reasons for Extension of Time Limit for Authorisation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>RBI has received requests from various\nstakeholders, including IBA (Indian Banks\u2019 Association), for extending the\ntimeline. The same was asked,keeping in view the COVID-19 related insolvencies\nand disruptions. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_Extended_Time_Limit\"><\/span>New Extended Time Limit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After taking into consideration the\nrequest made by the stakeholders, RBI has been accordingly decided to further\nextend the timeline for filing the application for the authorisation under\nUmbrella Entity of Retail Payments up to 31.03.2021. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\na nutshell, <a href=\"https:\/\/www.rbi.org.in\/\">RBI<\/a> has extended the last\ndate for filing the application for the authorisation under Umbrella Entity of\nRetail Payments after taking into consideration the requests made by the\nstakeholders. The extended date for the same is 31.03.2021.<\/p>\n\n\n\n<p><strong>Also, Read: <\/strong><mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/legal-entity-identifier\/\">Legal Entity Identifier: Implementation of LEI by RBI for Large Value Transactions<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_Notification_Passed_by_RBI\"><\/span>Official Notification Passed by RBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Official-Notification-Passed-by-RBI.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Official-Notification-Passed-by-RBI<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently the Reserve Bank of India (RBI), by way of Press Release No 2020 \u2013 2021\/ 1161, issued on 26.02.2021, has directed an extension in the Time Limit for Authorisation under Umbrella Entity of Retail Payments. The said framework was released by the apex bank on 18.08.2020. In this learning blog, we will discuss in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,56],"tags":[524],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3534"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3534"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3534\/revisions"}],"predecessor-version":[{"id":3539,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3534\/revisions\/3539"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3536"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}