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Leading banks, fintechs and India Inc companies are joining hands to apply for licences for the umbrella entity for retail payments. According to industry sources, about six such consortiums are set to apply for the licence. The Reserve Bank of India had extended the deadline to March 31.
Tech giants
Some of the consortiums are likely to include tech giants, including Google and Facebook, while corporates, including Reliance Industries through Reliance Jio and Tata Sons, are also understood to be in the race.
According to persons in the know, most applications are likely to be submitted to the RBI by Wednesday evening.
As was previously announced, Tata Sons promoted Ferbine Private Ltd in which HDFC Bank and Kotak Mahindra Bank have picked up stake, is set to apply for the licence. Mastercard is also understood to be a part of this.
Another consortium is being led by Axis Bank and ICICI Bank, along with Amazon, BillDesk, Pine Labs and Visa.
A third consortium includes So Hum Bharat Digital Payments, along with other fintech and payment players.
A fourth consortium is being led by Paytm and is likely to include IndusInd Bank, along with Suryoday Small Finance Bank, Ola and Centrum Finance and PolicyBazaar.
India Posts Payments Bank is also understood to be partnering with some players, including Razorpay, for a licence for the umbrella entity.
Deadline extension
The RBI had, on February 26 this year, extended the deadline for applications after receiving requests from stakeholders who had pointed to the Covid-19-related disruptions and inconveniences.
It had originally released the framework for the umbreall entity for retail payments on Augsut 18, 2020. It aims to help entities to set-up, manage and operate new payment systems in the retail space through means such as ATMs, White Label PoS; Aadhaar-based payments and remittance services; newer payment methods, standards and technologies; and also operate clearing and settlement systems for participating banks and non-banks.
The guidelines also said the umbrella entity shall have a minimum paid-up capital of ₹500 crore, and no single promoter or promoter group shall have more than 40 per cent investment in the capital of the umbrella entity.
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