The Payments Council of India (PCI) chairman emeritus Naveen Surya and Infibeam Avenues director Vishwas Patel have joined forces to set up a digital payments unit.
They are looking to apply for a new umbrella entity (NUE) licence, newly issued by the Reserve Bank of India (RBI), the country’s central bank.
Go deeper with GlobalData
Once they obtain the NUE licence, they will set up a new entity called So Hum Bharat Digital (SoHum).
SoHum is currently in talks to bring in new partners to raise INR5bn, the minimum paid-up capital required for NUE.
It has already partnered with digital payments solution provider Infibeam Avenues.
RBI’s framework for NUE, which has invited application from companies by 26 February 2021, will help operate pan-India retail payments systems.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPCI is expected to rival the National Payments Corporation of India (NPCI) and manage ATMs, point-of-sale (POS) terminals, and other payments and remittances.
SoHum will focus on creating new payment solutions across fintech, BFSI, and digital commerce domains, and help reduce cash usage.
It is expected to disrupt the microfinance industry and aims to onboard 500 million users within five years.
Patel said: “Presently, there are more than 850 million individuals, constituting almost the entire adult population in the country.
“One of the major considerations of this venture has been to deliver the most impactful market expansion in the country through a 6x increase in active digital consumers over the next decade from the current base of 100-600 million.”
Surya added: “Our government’s vision of a ‘Digital India’ helped in scaling up digital commerce considerably, and this new RBI initiative will go a long way in fulfilling this vision as it seeks to reduce cash transactions even further with a renewed focus on digital payments.
“It would be exciting to be a part of this expanded system along with Infibeam Avenues and industry stalwarts like Vishwas Patel.”
Currently, the top applicants for NUEs include Reliance Jio, Tata Group, and a State Bank of India (SBI)-led consortium.
Paytm Payments Bank is also planning to apply for an NUE licence. RBI is expected to receive 8-12 applications.
Earlier this month, banking lobby Indian Banks’ Association (IBA) and PCI were in talks to set up a regulatory body for digital payments.
