Yes Bank is set to partner with So Hum Bharat Digital Payments, which will apply for a license to become a new umbrella entity for retail payments.

The newly-formed company, on Tuesday, said that it is in discussion with Yes Bank for a 9.99 percent equity investment. Yes Bank confirmed it is evaluating a partnership with So Hum Bharat Digital Payments.

The company had also announced last month that payments company Infibeam Avenue is picking up 33.33 percent stake, joining its entity as Promoter and Investor.

"In the NUE, RBI has provided an ideal platform for innovators in the space to collaborate for creating robust and scalable payment platforms on the back of cutting edge technologies. In this context, we are evaluating a partnership with SO HUM Digital, subject to relevant approvals including regulatory," said Ajay Rajan, Global Head – Transaction Banking Group, Yes Bank.

So Hum Bharat Digital was set up in May this year by payments industry veteran Navin Surya, who was formerly MD at ItzCash, and also backed by Infibeam Avenues.

Earlier, Surya had told CNBC-TV18 that the entity will make the application for setting up a new umbrella entity soon.

"In SO HUM and it’s founder Navin Surya, we believe there are synergies around innovation and the problem solving spirit, that we feel can accelerate the journey towards a fully digital India,” Rajan said.

The Reserve Bank of India has opened up the process of receiving applications to set up new umbrella entities for retail payments. The deadline set by the central bank is February 26, 2021.

The bank has also laid down certain framework for setting up new umbrella entities: the NUE shall have a minimum paid-up capital of Rs 500 crore, no single promoter/promoter group shall have more than 40 percent investment in the capital of the NUE, and a minimum net-worth of Rs 300 crore shall be maintained at all times.

The new umbrella entities can set-up, manage and operate new payment systems, and operate clearing and settlement systems.

These new umbrella entities can be for-profit entities, unlike the National Payments Corporation of India, which a non-profit.

Yes Bank currently holds a 1.01 percent stake in NPCI.

“I have always been impressed by Yes Bank's success in the Fintech ecosystem driven by innovative and disruptive products and solutions. We at So Hum are proud to partner with Yes Bank and the combined expertise of the two firms will add significant value to this NUE venture through continuous innovation and disruption,” Surya said in a statement.

So Hum currently has 4 individual promoters, 1 corporate promoter (Infibeam).

First Published:Dec 1, 2020 10:52 AM IST