Paytm joins hands with Ola & others to apply for RBI’s digital payments umbrella entity

Vijay Shekhar Sharma, Founder & CEO, Paytm, has confirmed that they are applying to constitute a New Umbrella Entity (NUE) in partnership with several players including Ola, aiming to develop innovative digital payments solutions.

The consortium will also include a bank, a fintech company, a payments bank, a small finance bank, a tech startup, and an NBFC to become one of the most diverse NUEs ever seen, Vijay Shekhar Sharma stated.

The RBI, in August, 2020, had put together the idea to create a non-profit umbrella entity to manage and operate new payment systems, especially consumer-facing products. As it was envisoned by the RBI, the consortium will be responsible for developing new methods and technologies of payment, as well as coming up with innovative ways to boost financial inclusion in semi-urban and rural India.

VSS further added, “We’ve been saying that payments have become mainstream, and it is important for us to create more payment options and opportunities for consumers and businesses alike. RBI took note of it and has given an opportunity to apply for NUE. We are going to apply for sure… the process is on.”