National Payments Corporation Of India reported that it has completed the private placement of 4.63%. It allowed small finance and payments banks to be shareholders in the organization. Private banks were given an offer by the NPCI. Out of 131,9 had come forward and they were allotted shares, AU Small Finance Bank Ltd, and digital payment fintechs have become the shareholders. It is reported that they hold up to 0.44% in each entity.
There are 67 shareholders in NPCI.NPCI has said that this step was taken to broaden the shareholding to larger bodies and categories. This expansion was recommended by the Watal committee in December 2016.
It is expected that new entities will continue to participate. It is also expecting to come in direct competition with RBIs New Umbrella Entity. NUE entities will bring great innovations to the area of digital payments in India.
The new shareholders of the NCPI included Standard chartered bank Ltd, Dhanalaxmi Bank Ltd, IDFC First Bank. 40% of the shareholding is owned by the government banks like the State Bank Of India, Union Bank of India, Bank of Baroda. Other banks like HDFC also hold a major portion of the shareholding of NPCI.
NPCI is an initiative by RBI and the Indian Banks Association. The operation of the company currently includes UPI, Bharat Bill pay etc. UPI payments had crossed a milestone of 2 billion transactions last month. The NCPI looks forward to reaching much heights in terms of their growth