Idea, Aditya Birla Nuvo Apply for Payments Bank Licence

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Idea, Aditya Birla Nuvo Apply for Payments Bank Licence
Diversified firm Aditya Birla Nuvo Ltd (ABNL) on Monday applied for the payment bank licence with the Reserve Bank of India.

"Aditya Birla Nuvo on February 02, 2015, submitted an application to the Reserve Bank of India for obtaining licence for setting-up a payment bank," the company said in a BSE filing.

As per the proposed structure, ABNL will be the promoter of payment bank holding 51 percent equity capital. Idea Cellular Ltd, an Aditya Birla Group company where ABNL is largest promoter shareholder, will be hold the balance 49 percent.

(Also see: Bharti Airtel to Apply for Payments Bank Licence; Kotak to Be Investor)

The company added that "the Board of Directors of ABNL has also approved that equity participation of Idea may be increased up to 60 percent, if permitted, from time to time with approval of regulatory bodies as applicable."

(Also see: RIL Teams Up With SBI to Apply for Payments Bank Licence)

As per RBI guidelines on Payments Bank, they can raise deposits of up to Rs. 1 lakh per individual, issue ATM/debit cards and sell simple financial products such as mutual funds and insurance products.

Payment Banks would be allowed payments and remittance services through various channels.

However, Payments Banks, cannot issue credit cards or undertake lending activities.

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