According to a report from Reuters, Reliance Industries has partnered with tech giants Google, Facebook and Infibeam to establish a national digital payment network. The report claims that Reliance and Infibeam are getting ready to submit their proposal to set up the payments network.
The new digital payments network proposal will be submitted to the Reserve Bank of India (RBI). This course of action is in response to the invitation from RBI to design and implement a new umbrella entity (NUE) that help create payment networks that would offer an alternative to the existing system offered by the National Payments Council of India (NPCI).
All of the parties refused to make an official statement regarding the development owing to its confidentiality in nature. If you did not know, Google and Facebook have invested in the Reliance Industries owned Jio platforms last year, which owns a plethora of internet-based services such as music streaming, cloud meeting etc.
RBI has extended the deadline for participants to submit NUE applications from 26th February ti March 31. After submission, RBI would take another six months to study the proposal laid out by different entities to find the best one. In the end, we expect the Central Bank to give a “for-profit” NUE license to two or more different digital payment solutions.