The Reserve Bank of India (RBI) is not in favour of having direct and supervisory control over the New Umbrella Entities (NUE) and instead wants agencies such as the National Payments Corporation of India (NPCI) or a newly formed body to take over the role, senior government officials in know of the development said.
One of the major reasons for the central bank being in favour of letting either the NPCI or a newly formed entity take over the supervisory role is the high cost of setting up a new division at the RBI, the officials said. “In our initial discussions, it (high cost) was flagged more than once. Since the operations of NUEs will have financial aspects, the relevant permissions from RBI will still be needed. But the day-to-day supervision and control could be left to any other agency,” an official said.