Paytm, Ola Financial And IndusInd Bank To Set Up New Entity To Rival UPI Payment System: Report

In a major development, Vijay Shekhar Sharma led Paytm and Bhavish Agarwal led Ola Financial are said to have joined hands with the private sector lender IndusInd Bank to establish a New Umbrella Entity (NUE) which will allow them to establish a national payments network rivalling Unified Payment Interface (UPI) of the National Payments Corporation of India (NPCI), reports Economic Times.

The group which also includes non-bank lender Centrum Finance and fintech companies Zeta Pay and Electronic Payment and Services (EPS) is likely to submit its proposal to the Reserve Bank of India (RBI) before the deadline ends today (26 February). If the proposal is accepted, the combine will receive the license to establish an NUE.

The development gains significance as it comes just days after it had been reported that e-commerce major Amazon, along with ICICI Bank and Axis Bank, are also in the fray for the NUE license.

Other than these, consortiums led by Reliance Jio, Tata Group and Infibeam Avenues are also said to be in the race to get the NUE license from the RBI.