The Aditya Birla Group today said it has received license from the Reserve Bank of India to start payments bank. Headed by Kumar Mangalam Birla, the group’s outfit Aditya Birla Nuvo had set up a 51:49 joint venture — Aditya Birla Idea Payments Bank Ltd — with telecom major Idea Cellular to launch payments bank services in the country. Also Read - Fake WhatsApp message claims free internet for three months, don't fall for itAlso Read - Prepaid to postpaid and vice versa with OTP: Operators propose simple conversion process
“… the Reserve Bank of India… has granted license to Aditya Birla Idea Payments Bank Ltd to carry on the business of payments bank in India,” Aditya Birla Nuvo said in a BSE filing.
At present, Airtel and India Post are offering payments bank services in the country. Idea Cellular Chief Corporate Affairs Officer Rajat Mukarji had earlier said the Aditya Birla Idea Payments Bank will be launched in the first half of 2017. With the objective of deepening financial inclusion, RBI kicked off an era of differentiated banking by allowing SFBs (small finance banks) and PBs (payments banks) to start services. A total of 21 entities were given in-principle nod, including 11 for payments banks. ALSO READ: Airtel Payments Bank to soon cross-sell insurance, MF products
Later, three entities — Tech Mahindra, Cholamandalam Investment and Finance Company and a consortium of Dilip Shanghvi, IDFC Bank and Telenor Financial Services — backed out of the payments bank licensing. Payments banks can accept deposits from individuals and small businesses up to a maximum of Rs 1 lakh per account. ALSO READ: Vodafone, Idea Cellular announce merger to create India s biggest telecom operator