The Aditya Birla Group said it has received the licence 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 major telecom Idea Cellular to launch payments bank services in the country.
"The Reserve Bank of India has granted the licence 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. Airtel Payments Bank: All You Need To Know
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 the in-principle nod, including 11 for payments banks.
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.