Following the announcement by Bharti Airtel on Thursday, several other firms in India have come forward to seek a payment license from the Reserve Bank of India. Reliance Industries Ltd, Aditya Birla Nuvo Ltd and Vakrangee Ltd on Monday introduced their request to have payment banks in India.
According to the Reliance Industries Ltd, the company will seek joint venture with the India’s one of the largest bank, State Bank of India. Giving further details, the company said that the bank will have a stake of 30% where the remaining 70% equity will be seen by the company.
An official statement from the RIL stated, “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. 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,”
Aditya Birla Nuvo submitted the application in association with one of its firm, Idea Cellular Ltd. According to the company, 51% of the stake will be under Aditya Birla Nuvo Ltd, and the remaining 49% shall be held in the account of Idea Cellular Ltd. However, depending on the permission from the regulatory, Idea Cellular Ltd might have its equity of 60%.
Another applicant is the Kishore Biyani-led Future Group. As per the proposal, the group is going to put more emphasis on women, migrants and self-employed individuals in the country and the proposed payments bank, NuFuture Payment Bank, will extend its reach through the retail chains active in the country.
There have been few other applicants one of them was a Mumbai based software developer firm, Vakrangee Ltd. The company kept quiet about the details on the payment bank license.