Finance Minister Arun Jaitley said the launch of payments bank will now initiate competition between traditional banking and these new banks. “We will see competition not only among telecom companies but between traditional banking and these new banks,” Jaitley said at the launch of Airtel Payments Bank. 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
“Telecom companies have built-in customer base. This business of banking is incidental to their technology. It was a convergence waiting to happen,” Jaitley added. The payments bank will be an immediate addition to the existing bank structure, he said. The Reserve Bank of India gave the payments bank licences to 11 companies, of which 4-5 are telecom firms. ALSO READ: What is a payments bank?
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