Reliance, Airtel, 9 others get RBI nod for payments banks

The Reserve Bank of India on Wednesday gave an in-principle nod to eleven entities to launch a payments bank—the first set of differentiated bank licences to be issued by the regulator.
The eleven companies include conglomerates and large telecom firms like Reliance Industries Ltd, Aditya Birla Nuvo Ltd, Airtel M Commerce Services Ltd, Vodafone m-pesa Ltd and Tech Mahindra Ltd.



The Department of Posts, Cholamandalam Distribution Services Ltd, FINO PayTech Ltd, National Securities Depository Ltd, Dilip Shanghvi (promoter of Sun Pharma) and Vijay Shekhar Sharma (promoter of Paytm) have also been granted licences.
The RBI had received 41 applications for payment bank licences, out of which 11 have been accepted.
Payments banks can accept deposits of up to Rs. 1 lakh and can offer current and savings account deposits. They can also issue debit cards and offer internet banking. But they are not allowed to lend or issue credit cards.
The process for selecting the applicants was detailed scrutiny undertaken by an External Advisory Committee (EAC) under the Chairmanship of Dr. Nachiket Mor, Director, Central Board of the Reserve Bank of India and was formerly with ICICI Group.


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