NEW DELHI, Feb 2: Aditya Birla Nuvo Limited, promoter group of telecom major Idea today said it has applied for the license for setting up Payment Bank to the Reserve Bank of India today. ABNL submitted an application to the RBI for grant of license for setting-up ‘Payments Bank’, in accordance with the payments bank guidelines in which Idea is partnering with ABNL. ABNL would hold 51 per cent equity in the payments bank, which is proposed to be registered as Idea Payments Bank Limited, the company said in a filing to the Bombay Stock Exchange. The Board of Directors of Idea has approved participation in the payments bank upto 49 per cent under the automatic route and upto 60 per cent or as permitted from time to time with approval of regulatory bodies as applicable, the statement said. A wholly owned subsidiary of Idea Idea Mobile Commerce Services Limited (IMCSL), which is part of the promoter group, has a current authorisation from RBI to issue Prepaid Payment Instruments (PPI Issuer). Payments banks are aimed at encouraging savings and help with remittances, although RBI has put a cap on the stake which can be held by commercial banks in such entities. Mobile telephony companies like state-run BSNL, Vodafone and Telenor are looking to enter the fray, after the RBI came out with the final guidelines on establishing payment banks and small finance banks late last year.
(AGENCIES)
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