Aditya Birla Nuvo Ltd (ABNL) on Friday announced the formation of a joint venture with group firm Idea Cellular to set up a payments bank.
A payments bank can only accept deposits and transfer money from one account to another. It can’t lend.
Last year in August, the central bank had given in-principle approval to Aditya Birla Nuvo to set up a payments bank.
The company, with Idea Cellular, has incorporated a subsidiary, Aditya Birla Nuvo said in a BSE filing.
Aditya Birla Nuvo will hold 51 per cent of the shares and the rest 49 per cent will be held by Idea Cellular, it added.
Payments banks are allowed to collect deposits (initially up to Rs 1 lakh per individual), offer internet banking, ease money transfers, and sell insurance and mutual funds. A total of 11 entities, including Reliance Industries, Airtel M Commerce Services, Vodafone m-pesa, Tech Mahindra, and Department of Posts, were given in-principle approval by the central bank to set up payments banks.
