On Tuesday Paytm said it’s getting to apply for brand new Umbrella Entity(NUE) during a consortium with players including the ride-hailing platform Ola. Paytm mobile app is used by millions of Indians. It is used to pay utility bills, groceries, recharging mobile connections, movie tickets etc. Paytm is a fully licensed digital bank.
Vijay Shekhar Sharma is the Paytm founder and Chief executive officer, speaking to PTI he said that the corporate sees the NUE system. To play out as an excellent opportunity for payments within the country. They have been saying that payments became mainstream, and it’s important to make more payment options. And opportunities for consumers and businesses alike. RBI took a note of it and has given a chance to use for NUE.
Paytm applying for NUE in consortium with Ola
Vijay Shekhar Sharma said that consortium will include a bank, small finance bank, payments bank, fintech company, tech company. NBFC – one among the foremost diverse NUE consortiums. That they’re going to see but he declined to supply additional details.
Ola didn’t answer to e-mailed queries. In last year August RBI had released a framework for the authorization. Of an umbrella entity for the retail payments with the country itself. And by February 26, 2021 had invited applications from desirous entities.
After requests from various stakeholders including Indian Banks’ Association for extending the deadline insight of the pandemic. The Federal Reserve Bank of India had extended the deadline to use for NUE to March 31. NUEs are getting to be acknowledged as an organization as a for-profit under the Companies Act, 2013. And may get authorization under the Payment and Settlement Systems Act, 2007 (PSS Act). Such entities will undertake tasks like fixing , managing and operating new payment systems in retail space.
They are also expected to work clearing and settlement systems for participating banks and non-banks. And keep it up the other business suitable to further strengthen the retail payments ecosystem within the country.
According to the reports, several other companies partnered with major tech players and banks to use for NUEs. Reports suggest that Reliance Industries, along side Facebook and Google. Which have invested in Jio Platforms – are getting to apply. While Tata Group has joined hands with MasterCard, Kotak Mahindra Bank, Bharti Airtel and HDFC Bank.
Sharma said NUE will provide a chance to make more payment systems which will be scaled. They see it as a chance to serve an outsized Indian. Population with more innovative, more inclusive payment options. They believe that they will play a task in this. So, they’re seeing this as a chance to be a catalyst in scaling of payments during this country.
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