Aditya Birla Nuvo, the holding company of Aditya Birla Group, said that it has received an in-principle approval from the Reserve Bank of India (RBI) to set up payment bank under the Guidelines for Licensing of Payments Banks issued on November 27, 2014.
"RBI has decided to grant its "in-principle" approval to the Company to set up payment bank under the Guidelines for Licensing of Payments Banks issued on November 27, 2014," the company said in a filing to the Bombay Stock Exchange.
A payment banks differs from conventional banks as it cannot lend to its customers. It is allowed to take deposits, allow remittances and provide simple financial products.
Aditya Birla Nuvo is a USD 4.5 billion conglomerate by revenue size. The company, part of Aditya Birla Group, is present across financial Services, telecom, fashion & lifestyle, IT-ITeS and manufacturing businesses.
Meanwhile, shares of the company were trading at Rs 2290.40 a piece, up 1.26 per cent from the previous close at 10:01 hours on BSE.