RBI shelves plan for NUE

The Reserve Bank of India on Thursday said it would not go ahead with the plan for a New Umbrella Entity (NUE) as the business proposals received from prospective applicants did not present any new idea.

ET was the first to report on January 7 that the regulator had put the licensing process on hold as the six consortiums had fallen short of the RBI's expectations.

"The objective was to introduce an innovative infrastructural value-added facility into the system, our digital ecosystem is already quite active and innovative, we just wanted to bring in new ideas," said T Rabi Sankar, deputy governor of RBI. "We did not want something that is either incremental or a substitute for existing ideas or technologies. Of the proposals that we have received, we did not see any innovative solution that had come up. So that's where it lies."