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SBI plans to enter digital payments space, 'examining' RBI's NUE framework: Report

In granted approval, the SBI entity will be set up under the RBI's New Umbrella Entity framework and will counter the National Payments Corporation of India.

August 27, 2020 / 04:14 PM IST
Representative image

Representative image

State Bank of India (SBI) is planning to foray into digital payments by setting up an entity under the Reserve Bank of India’s New Umbrella Entity (NUE) framework for retail payments. As per a research report, digital payments in India are expected to grow over three-fold to Rs 7,092 trillion by 2025.

The RBI recently released a framework to set up a pan-India umbrella entity focussing on retail payment systems. Such an entity will be a company incorporated in India under the Companies Act 2013, and may be a ‘for-profit’ or a Section 8 company as may be decided by it, the RBI said.

SBI's venture will counter the National Payments Corporation of India (NPCI). NPCI is a retail payments entity that supports UPI, IMPS, RuPay cards, ATM transactions and others.

As per an Economic Times' report, the public sector bank's senior management has already held preliminary discussions.