RIL,SBI Sigh Shareholder Agreement for Payment Bank JV [ Current News (Concise) ]
Reliance Industries Limited (RIL) and India’s largest bank State Bank of India (SBI) have signed Subscription and Shareholders’ Agreement to set up payments bank. According to the agreement, Reliance Industries will be the promoter with a 70 % equity contribution in the payments bank and SBI as joint venture will have 30 % equity contribution.
- In August 2015 RIL-SBI combine was among the 11 units that were given licence by the Reserve Bank of India (RBI) to start a payments bank.
- Till now, Cholamandalam Investment and Finance Co and Sun Pharma, IDFC Bank and telecom operator Telenor have decided to shelve plans of launching payments bank.
About Payments banks:
- Payments banks are accept deposits (initially up to 1 lakh rupees per individual). This banks are small deposit-taking institutions.
- They will offer Internet banking, facilitate money transfers and sell insurance and mutual funds by piggy-backing on existing retail or other networks.
- Payments banks can also issue ATM/debit cards, but not credit cards. Though, they are not allowed to loan. Instead, they can invest 75 % of their deposits in short-term government bonds.
- Published on: July 4, 2016