It is the seventh entity to receive nod from the RBI to set up a payments bank, reported the LiveMint.
Except Vodafone M-Pesa Ltd, all payment bank licence holders have already received the final approval from the central bank. Last week RBI granted a final licence to Fino Pay Tech Ltd and National Securities Depository Ltd.
Among payment bank licence holders, two entities namely Airtel Payments Bank and India Post Payments Bank (IPPB) have started operations so far. While Airtel is offering 7.25 per cent interest in its savings account, IPPB is offering three types of accounts where interest rates will vary from 4.5-5.5 per cent.
Aditya Birla Idea Payments Bank is a 51:49 joint venture (JV) between Aditya Birla Nuvo Ltd (ABNL) and telecom major Idea Cellular.
The RBI initially gave in-principle approval to 11 entities to start payments bank operations in August 2015. Out of them, Tech Mahindra, Cholamandalam Investment and Finance Company and a consortium of Dilip Shanghvi, IDFC Bank and Telenor Financial Services have backtracked on their payments bank plans.