The payments bank is a 51:49 joint venture (JV) between Aditya Birla Nuvo Ltd (ABNL) and telecom major Idea Cellular, respectively.
The company, which recently received the Reserve Bank of India’s (RBI) final approval, to open its payments bank, is in the process of integrating its systems with those of the National Payments Corporation of India and the RBI, reported the LiveMint.
The bank will start operations with over 1.5 lakh touch points, an in-inbuilt United Payment Interface (UPI) solution, and will look at distributing loans of other financial institutions.
According to the RBI’s norms, Payments bank can accept deposits and open current and savings accounts but are not permitted to lend or issue credit cards.
“It is clearly a scale game, unlike traditional banking. In traditional banking, you can put up one branch and still do well. Here, it is scale since technology platform is the same which has to accommodate many transactions. So more the transactions you accommodate, more benefit you can give to the customers,” said Chief Executive Officer (designate), Sudhakar Ramasubramanian, Aditya Birla Idea Payments Bank.
“India Post has access to people but does not have as many customers. We are the organisation where we have done the Know Your Customer (KYC) and two million retailers is the network which we have. Also, 15 per cent of India is our existing customer base and 200 million of 8 billion is like 3 per cent of the world’s population,” he added.