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The bank consortium is led by Axis Bank and
ICICI Bank, with 20% each and co-promoting an entity called MoPay. This consortium also has BillDesk, Pine Labs, Amazon and Visa with 15% stake each, sources directly aware of the talks told ET.
A consortium led by Reliance Industries and Infibeam Avenue has also submitted its proposal Wednesday. Facebook and Google are set to have minority stakes in this entity, as reported by ET in February.
Tata Group has also applied for the NUE licence through its subsidiary Ferbine Payments. It will own 40% in the entity while Airtel Digital, Mastercard and Nabard will hold 10% each. Flipkart, through its subsidiary FlipPay, and Naspers-backed PayU will own about 5% each in the Tata entity. HDFC Bank and Kotak Mahindra Bank will hold 9.99% each in Ferbine.
Why digital payment is a public good - The Hindu BusinessLine thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
March 5, 2021
Flipkart, Mastercard and PayU will join the Tata Group-led consortium to create a digital payments New Umbrella Entity (NUE), the Economic Times reported. The three entities will buy a 30% stake together in Ferbine Pvt. Ltd, an entity set up by the Tatas that will operate the NUE under the Reserve Bank of India’s authorisation.
If granted a license the consortium will set up and operate new payments platforms that will compete with the National Payment Corporation of India (NPCI), while also building payments platforms that complement the NPCI’s own. While HDFC Bank and Kotak Mahindra Bank each have a 9.9% stake in the entity, Mastercard and Airtel Digital have bought a 10% stake each, Flipkart’s FlipPay, and Naspers-backed PayU will each acquire a 5% stake in the Tata led NUE, the report said. It added that Tata’s have retained 40% of the company.
The Finance Ministry has raised concerns over the SBI, HDFC Bank and BoB combine which reportedly plans to jointly apply for a New Umbrella Entity (NUE) license
Synopsis
The government doesn t want public sector banks, which SBI and Bank of Baroda are, to compete against RuPay and UPI that are run by the National Payments Corporation of India (NPCI).
Agencies
SBI, HDFC Bank and Bank of Baroda together process over 50% of all digital transactions, including by their own customers and third-party networks such as NPCI s UPI.
Mumbai: The finance ministry has raised concerns over
State Bank of India’s plan to set up a joint venture with
Bank of Baroda under the central bank’s new umbrella entity (NUE) framework, worried that it could squeeze the National Payments Corporation of India (NPCI), three people aware of the matter told The Economic Times.