Delhi- The telecom companies have got the permission from the Reserve Bank to set up payment banks (non-lending). Vodafone, Bharti Airtel, Birla & Reliance are among the 11 billionaire entities that are among the list of the granted permission companies. These firms explained that this bank will be a part of normal financial inclusion drive for them.
Banking's New phase
|Reserve bank of India|
Previously, Reliance had announced about the official partnership with SBI (State Bank of India), Aditya Birla Nuvo, Vodafone m-pesa, Airtel M Commerce Services Limited & Department of Posts got the legitimate approval. The approvals are to set up niche banks & RBI has given the verdict in support to these telecom companies. Moreover, Aditya Birla Nuvo Limited is tying up with Idea Cellular with a stake of 49% in the joint venture. In addition RBI says, “ The in-principle approval will expire after a period of 1.5 years, in this duration of time the applicants will have to abide with the guidelines, rules and requirements to fulfil the other conditions that is purely stipulated by the Reserve Bank of India.”
There were total of 41 applicants to apply for the niche payment banks. Apart from the renowned billionaire entities, many other popular firms also get the approval as:
- The promoter of Sun Pharma Dilip Shantilal Shanghvi
- PayTM’s Vijay Shekhar Sharma
- Fino PayTech
- Cholamandalam Distribution Services
- NSDL (National Securities Depository)
This type of banks will be a new kind of revolution in India as the companies assures that the customers will be beneficial from this payment gateways. They added that more the applicants approval more will be the chance for this concept to reach to different parts of the country. The Concept is already starting to be implemented by the entities. This payment bank will be given license to allow the firm to collect deposits & they will offer facilities like Internet banking, Sell and buy mutual funds, Insurance policies & allow money transfers . But initially the deposit is restricted to 1 Lakh INR per individual. Though it will be increased with the time and gradual success of the concept. In addition, ATM/Debit Cards will be issued to the customers but credit cards won’t be.
Arun Jaitley ( Finance Minister) says, “ This banks will make sure that money comes into the banking system & will definitely reach out to people of rural regions. Many reputable banks like SBIare in search of raising their rural traffic “ Urbanization will be done & development of such areas will prevail.
Customers will be eager to know the schemes and services offered by the newly constituted entities. It will be an interesting approach to lead the empowerment of the rural areas and reaching to them for the growth and prosperity of such region. The country’s largest lender is State Bank of India & they said that they will take 30 % in RIL’s bank, while India’s largest telecom operator (Bharti Airtel) is aiming to give 20% stake to Kotak Mahindra bank. Some of the entities have not yet revealed about their plans but it is sure that the list will be increased of the approvals to qualify for the banking revolution.