For payments bank space ICICI Bank partners with FINO PayTech [ Current Affairs ]
To expedition into the payments bank space India’s largest private sector lender ICICI Bank has partnered with FINO PayTech. And with this ICICI Bank joins some of the leading lenders of the country who are already partnered with payments banks like Kotak Mahindra Bank (KMB) and State Bank of India (SBI) have picked up stake in payments banks to be floated by Bharti Group and Reliance Industries respectively.
- The Reserve Bank of India (RBI) has given license to FINO PayTech to receive ‘in principle’ for 10 other entities to start a payment bank.
- To making FINO PayTech one of the largest domestic shareholder ICICI Group has purchased about 16 % stake.
- The tie-up with ICICI Bank will help FINO to extend services like a payments bank which is not allowed to offer.
- It will also help FINO PayTech to build some banking products and services which they cannot offer on our own.
- RBI regulations allow universal banks to invest up to 30 % in payments bank currently.
- It is going to raise capital, before starting payments bank business which will help bring down foreign shareholding within prescribed limit.
- Published on: January 11, 2016