Aditya Birla Idea Payments Bank (ABIPBL), a joint venture between Aditya Birla Nuvo and Ideal Cellular, has commenced operations in India.
“The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India,” the central bank said in a statement.
ABIPBL is among the 11 entities that received in-principle approval in August 2015 to launch payment banks.
The other recipients are Reliance Industries, Airtel M Commerce Services, Vodafone m-pesa, Tech Mahindra, Cholamandalam Distribution Services, Department of Posts, Fino PayTech, National Securities Depository, Shri Dilip Shantilal Shanghvi, and Shri Vijay Shekhar Sharma.
However, Tech Mahindra, Cholamandalam Investment and Finance Company as well as a consortium of Dilip Shanghvi, IDFC Bank and Telenor Financial Services later scrapped the plan.
Payment banks are allowed to take deposits, offer remittance services, sell insurance and mutual funds, offer internet banking, and issue ATM/debit cards. However, they are restricted from lending to customers and issuing credit cards unlike traditional banks.
Airtel Payments Bank, Paytm Payments Bank and Fino Payments Bank have already launched operations in India.