Aditya Birla Nuvo applies to RBI for payments bank licence
Moneylife Digital Team 02 February 2015
Payments Banks cannot issue credit cards or undertake lending activities
 
Aditya Birla group has applied to RBI (Reserve Bank of India) for a payments bank license. The specific company within the group was Aditya Birla Nuvo Limited.
 
"Aditya Birla Nuvo, on 2 February 2015, submitted an application to the Reserve Bank of India for obtaining licence for setting-up Payments Bank," the company said in a BSE filing.
 
As per the proposed structure, the company will be the promoter of the new Payments Bank holding 51% equity capital. Idea Cellular Ltd, also an Aditya Birla Group company, will be holding the balance 49%.
 
As per RBI guidelines on Payments Bank, they can raise deposits of up to Rs1 lakh per individual, issue ATM/debit cards and sell simple financial products such as mutual funds and insurance products. Payments Banks cannot, however, issue credit cards or undertake lending activities.
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