Private sector lender Kotak Mahindra Bank has acquired a 9.99 per cent stake in Ferbine Private Limited, which plans to apply to the Reserve Bank of India to set-up a pan-India umbrella entity (PUE) for retail payments.
“We wish to inform you that Kotak Mahindra Bank has agreed to subscribe to 4,995 equity shares in Ferbine Private Limited for a consideration of ₹49,950, translating into an equity shareholding of 9.99 per cent on February 25, 2021,” the lender said in a regulatory statement on Thursday.
Ferbine Private Limited was incorporated on January 18, 2021 to make an application to RBI for the PUE license, it further said.
“The main business of the company would be to operating a pan-India umbrella entity for retail payment systems, as would be allowed/licensed by RBI, subject to the approval of the PUE application,” the bank said.
The promoter of Ferbine is Tata Sons Private Ltd, Farida Khambata, a director of the Bank is also on the board of Tata Sons Ltd.
The acquisition in Febrine Private Limited by Kotak Mahindra Bank is likely to be completed on or before February 26, 2021.
“It may be noted that the Bank may participate in future capital raise by Ferbine,” the bank said.
The announcement comes just ahead of the RBI deadline for accepting applications for an umbrella entity for retail payments by February 26, 2021.
Earlier, So Hum Bharat Digital Payments had announced that it is in talks with private sector lender Yes Bank for a 9.99 per cent equity investment and will work together on the proposed new umbrella entity (NUE).
Other banks are also understood to be evaluating and applying to the RBI under the guidelines.