Companies run by billionaires Mukesh Ambani and Kumar Mangalam Birla as well as telcos Bharti Airtel and Vodafone are among the 11 entities that today got the RBI’s nod to set up non-lending payments banks as part of the financial inclusion drive.
The RBI governor today hailed these banks as “one of the most exciting space for the banking system”. He said payments banks are not a threat to universal banks, rather they will serve as feeders for universal banks.
An Airtel spokesperson said; “We thank the Reserve Bank of India for granting the Payments Bank license to Airtel M Commerce Services Limited. We are confident that this move will play a pivotal role in bringing millions of unbanked Indians into the folds of banking. We look forward to contributing in a meaningful way and further the Government’s larger financial inclusion agenda”
Reliance Industries, which had previously announced partnership with SBI, Airtel M Commerce Services, Aditya Birla Nuvo, Vodafone m-pesa, Tech Mahindra and Department of Posts got ‘in-principal’ approval from RBI to set up such niche banks.
Sun Pharma promoter Dilip Shantilal Shanghvi and Vijay Shekhar Sharma of PayTM also got approval in their individual capacities.
Besides, Cholamandalam Distribution Services, Fino PayTech, and National Securities Depository (NSDL) also got approval, out of the 41 applicants.
A payments bank licence will allow companies to collect deposits (initially up to Rs 1 lakh per entity), offer internet banking, facilitate money transfers and sell insurance and mutual fund products.
These entities can also issue ATM/debit cards, but not credit cards.
(With inputs from PTI)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)