According to Market news, there are 6 consortiums currently applying for the RBI’s New Umbrella Entity Licenses. The last date for the application was 31st March 2021. Reports suggest that only 2 of these entities will be granted a license. So let’s take a look at these entities
The 6 Consortiums are
Tata Group with HDFC Bank and Kotak Mahindra:
Tata group has partnered with private banks HDFC and Kotak to set up an entity called Ferbine Pvt Ltd to act as an Umbrella entity. According to news sources, HDFC Bank and Kotak Mahindra Bank will have a 9.9% stake in the entity. Apart from this, Airtel Digital will buy10% stake. Entities like Mastercard, Flipkart, Nabard and PayU are also expected to be a part of this deal.
Reliance, Google, and Facebook
Reliance Industries has partnered with tech giants Google and Facebook to set up NUE in the country. According to an article by Economic Times, the entity will be jointly promoted by a subsidiary of Reliance and Infibeam Avenues, called So Hum Bharat. Google and Facebook will hold stakes in the entity. Navin Surya, the former founder of Itzcash, has been appointed the MD and CEO of the entity.
Paytm, Ola, and IndusInd Bank
PayTM and Ola, the two of the largest startups in the county, have formed a partnership with IndusInd Bank to apply for an NUE license. According to an article by moneycontrol, other entities like Zeta Pay, EPS, and Centrum Finance are also expected to be a part of this deal.
With the strong presence of PAYTM in the payment segment and IndusInd’s position in the rural areas of the country, it is expected that the NUE set up by these entities will be focused on the Semi-urban and Rural population.
Amazon, Axis Bank, ICICI, and Visa
Tech giant Amazon along with Indian banks Axis and ICICI and Payment network Visa have formed a partnership to apply for NUE license. They are also joined by fintech players Bill Desk and Pine Labs.
According to sources, all firms involved in this venture will have almost identical stakes.
FSS, Central Bank of India, India Post Payments Bank, NABARD, and Indian Bank
(FSS), a leading provider of payment products and payment processors is in talks and may file an application to the RBI for an NUE license.
The other constituents of this group include Indian Bank, Central Bank of India, India Post Payments Bank, National Bank for Agriculture and Rural Development (Nabard), and a few small finance banks.
FIS, Union Bank and Punjab National Bank
A consortium led by FIS, a top provider of technology solutions for merchants, banks, and capital markets firms globally, along with Punjab National Bank, Union Bank of India, and a few other fintech companies, is also in talks with the RBI regarding the application of and NUE license