Policy Bazaar is all set to enter the NUE 2021 race. NUE stands for New Umbrella Entity. As per the report, Policybazaar is likely to join the New Umbrella Entity consortium led by Paytm, Ola Financial Services, and IndusInd Bank.
The consortium is set up with an entity named Foster Payment Network to apply for the NUE 2021 license in order to elevate a new umbrella retail payment organisation says the report. As per the sources, three Paytm groups (Paytm Payments Bank, Paytm Financial Services, and Founder Vijay Shankar Sharma) and Mumbai-located Electronic Payment and Services (EPS) expects co-promoting foster and holding 10% stakes individually in Foster.
Additionally, Electronic Payments and Services will also acquire a 10% stake in security. On the other hand, Policy Bazaar, Ola Financial Services, and IndusInd Bank will hold stakes of less than 10% in the New Umbrella Entity.
The report also confirms that bodies like Fintech Zeta and data analytics firm Think360.ai, and Suryoday Small Finance Bank will hold minor stakes in the NUE entity. The experts expect that the NUE will directly compete with the NPCI in order to develop and operate new digital payments systems.
Other Bodies in the Race to NUE
Apart from Policy Bazaar, few other bodies like Reliance Industries, Infibeam Avenue, Facebook and Google-backed SoHum Bharat, and another NUE backed by ICICI Bank, Pine Labs, Axis Bank and Amazon are on the lists.
Till now, the exact shareholding ratio cannot be ascertained as the discussion is in progress. However, the consortium is the final step of examining and reviewing its proposal before presenting the NUE bid on or before March 31, 2021.
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