Aditya Birla Group gets RBI licence to start payments bank

Aditya Birla Idea Payments Bank becomes the seventh entity to receive a final licence from the RBI to set up a payments bank


A file photo of Kumar Mangalam Birla. The group’s outfit Aditya Birla Nuvo had set up a 51:49 joint venture with telecom major Idea Cellular to launch payments bank services in the country. Photo: Abhijit Bhatlekar/Mint
A file photo of Kumar Mangalam Birla. The group’s outfit Aditya Birla Nuvo had set up a 51:49 joint venture with telecom major Idea Cellular to launch payments bank services in the country. Photo: Abhijit Bhatlekar/Mint

Mumbai: Aditya Birla Idea Payments Bank Ltd becomes the seventh entity to receive a final licence from the Reserve Bank of India (RBI) to set up a payments bank, according to a stock exchange notification.

Except Vodafone M-Pesa Ltd, all payment bank licence holders have received the final approval. Last week RBI granted a final licence to Fino Pay Tech Ltd and National Securities Depository Ltd.

Among payment bank licence holders, two entities namely Airtel Payments Bank and India Post Payments Bank (IPPB) have started operations so far. While Airtel is offering 7.25% interest on its savings account, IPPB is offering three types of accounts where interest rates will vary from 4.5-5.5%.

Aditya Birla Idea Payments Bank is a 51:49 joint venture (JV) between Aditya Birla Nuvo Ltd (ABNL) and telecom major Idea Cellular.

The central bank gave in-principle approval to 11 entities to start payments bank operations in August 2015. Out of them, Tech Mahindra, Cholamandalam Investment and Finance Company and a consortium of Dilip Shanghvi, IDFC Bank and Telenor Financial Services have backtracked on their payments bank plans.

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