The Vodafone-Idea telecom has decided to close the operations of the Aditya Birla Idea Payments Bank Ltd (ABIPBL), nearly 17 months after its launch.
ABIPBL CEO Sudhakar Ramasubramanian has made the announcement about the closure of the payments bank to its employees. The employees have been asked to leave.
Vodafone-Idea in its exchange filing has said that “the board of directors has received regulatory approvals to wind down the business. The decision was taken due to unanticipated developments in the business landscape that have made the economic model unviable.”
The ABIPBL is a joint venture between Idea Cellular with 49 percent stake) and Aditya Birla Nuvo Limited with 51 percent stake. ABIPBL is one of the seven operational payments banks in India, who had received a license under a differentiated banking model in 2015.
The payment bank to its users in a letter said that “We regret to inform you that we intend to discontinue our banking service.”
However, the letter did not elaborate on the reasons for the closure of the bank.
Around 160 employees have already left the organisations and some have been shifted within Aditya Birla Group.
October 18 is the last working day for employees.