JIO, Paytm interested to launch its own Credit Card & UPI company (competitor of Visa, Mastercard, RuPay, UPI etc)

JIO, Paytm interested to launch own Credit Card & UPI company (competitor of Visa, Mastercard, RuPay, UPI etc) -

Reliance Jio, Paytm, capital market exchanges NSE and BSE are among top firms interested in NPCI like retail payment system -

As per one highly-placed source, several other high-profile companies — a technology giant, global financial technology companies and a consortium of Indian fintechs — have also enquired about applying for the licence.

“RBI can hand out more than one licence based on the number of applications and strength of proposals. The plan is to issue at least a couple of licences by this year 2020-end."

If given the green light, these companies can set up a pan-India payment network which can launch and govern its own payment systems — in ways similar to how NPCI operates UPI or NACH or maybe launch its own Credit Card like RuPay Card.

Full details -

The Reserve Bank of India’s attempt to bring private sector entities to participate in the operation and governance of the country’s burgeoning retail payment system seems to be generating interest among India Inc.

Mukesh Ambani-owned Reliance IndustriesNSE -2.11 %, Paytm, capital market exchanges NSE and BSE are among top firms interested in securing licences to own and operate an entity with powers at a par with National Payments Corporation of India (NPCI), multiple sources aware of the development told ET.

The companies have appointed advisers to steer the project and held early stage discussions with RBI to explore the possibility of applying for a licence under its draft New Umbrella Entity (NUE) norms, people aware said.

They said the widespread interest stems from the fact that these companies feel they have expertise and infrastructure to handle payment settlement at scale, and a licence for NUE can help them have more autonomy and flexibility. Besides, it may pave way for several collaborative products that could determine the future of India’s payment ecosystem. “A Reliance-owned entity in partnership with Facebook could introduce digital currency project Libra 2.0 in a phased manner with due approvals,” said one of the sources cited above. “Those who get approval may well be at the forefront of the next big payments revolution in India.”

A detailed questionnaire sent to RBI, RIL and NSE didn’t elicit a response while spokespersons from Paytm and BSE declined to comment for this report.

As per one highly-placed source, several other high-profile companies — a technology giant, global financial technology companies and a consortium of Indian fintechs — have also enquired about applying for the licence when RBI opens the window. However, ET could not independently verify the identity of these firms.

If given the green light, these companies can set up a pan-India payment network which can launch and govern its own payment systems — in ways similar to how NPCI operates Unified Payment Interface (UPI) or National Automated Clearing House (NACH) — once RBI releases final guidelines on eligibility and application. Currently, the process is in consultation stage, with regulators having placed draft norms for the proposed project in public domain earlier this year.

The proposed entity would be regulated by RBI and authorised under the Payment and Settlement Systems Act (PSSA) 2007, as per the draft guideline. The company, unlike NPCI, which is owned by a consortium of top Indian banks, can be a “for-profit” entity as well.

“The regulators plan to release final guidelines, including details on eligibility and governance structure, by year-end,” said another source. “RBI can hand out more than one licence based on the number of applications and strength of proposals. The plan is to issue at least a couple of licences by this year-end."