Mumbai: Aditya Birla Idea Payments Bank Ltd (ABIPBL) started operations on Thursday, making it the fifth payments bank to roll out operations after the central bank gave its in-principle approval to 11 applicants in August 2015.
The roll-out comes at a time when the regulator has issued fresh know your customer norms for payments banks that are likely to increase operational costs for these banks.
“Aditya Birla Idea Payments Bank Limited has commenced operations as a payments bank with effect from 22 February, 2018. 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," a press release by RBI stated on Thursday.
The other payments banks that have started operations include Airtel Payments Bank Ltd, India Post Payments Bank Ltd, Paytm Payments Bank Ltd and Fino Payments Bank Ltd.
The other applicants that are yet to set up payments bank include Vodafone m-Pesa Ltd, Reliance Industries Ltd and National Securities Depository Ltd.
Three surrendered their licences.