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Reliance Industries Limited (RIL) has applied for a payments bank licence with country's largest bank State Bank of India (SBI).
RIL will be the promoter and SBI will be the joint venture partner with equity investment of up to 30%.
The partnership is in accordance with the guidelines for payments bank issued by RBI and subject to grant of licence by RBI.
The partnership is in accordance with the guidelines for payments bank issued by RBI and subject to grant of licence by RBI.
"This partnership brings together the combined strengths of two of India’s Fortune 500 corporations committed to making a transformative impact on India’s financial inclusion landscape," RIL said in a press statement.
The payments bank will leverage SBI’s nationwide distribution network and risk management capabilities along with the substantial investments made by RIL in its retail and telecom businesses.
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It will deploy state-of-the-art technology, build scalable infrastructure and create extensive branch and business correspondent network in order to provide last-mile access and intuitive user experience to all sections of society.
Besides promoting financial inclusion by providing banking and transaction services to unbanked, underbanked and small businesses, the partners see formation of the Payments Bank as an opportunity to: lead and co-create an eco-system to provide accessible, simple and affordable banking solutions; digitise payments and act as a catalyst towards a cashless society and democratise banking and payment services through massive adoption and low transaction costs.
