Date:21/12/2005 URL: http://www.thehindubusinessline.com/2005/12/21/stories/2005122103230600.htm

Back National Payment Corpn registered

Our Bureau

Mumbai , Dec. 20

NATIONAL Payment Corporation of India will be the name of the retail clearing operation company to be floated by some 20 banks in February 2006.

The company has been approved and registered as a Section 25 company, said banking officials. As per this Act, equity-holders will not share the profits of the company.

The authorised capital of the company is Rs 300 crore and initial paid-up capital would be Rs 100 crore. About 20 banks would join initially as equity holders, but no bank would hold more than 10 per cent stake, said an official associated with the formation of the new organisation.

The banks include SBI, ICICI Bank, Citibank, Union Bank of India, Bank of Baroda and HSBC.

The functions of the existing clearing houses owned by the Reserve Bank of India and State Bank of India and other banks will be transferred to the new company. Once the new company starts functioning, the RBI will focus only on regulatory issues.