Bharti Airtel first to receive final approval from the RBI for payments bank.

Q.  Which is the first entity to get final approval from RBI for setting up a payment’s bank?
- Published on 13 Apr 16

a. Department of Posts
b. Vodafone M-Pesa
c. Bharti Airtel
d. Tech Mahindra

ANSWER: Bharti Airtel
 
  • Bharti Airtel's payments bank venture — Airtel M Commerce Services Ltd. — has become the first entity to receive final approval from the Reserve Bank of India (RBI) to start a payments bank.
  • RBI, the banking regulator granted in-principle licenses to 11 entities to start payments banks. The ‘in-principle’ approval was valid for 18 months, during which time the applicants were asked by RBI to comply with the licensing norms.
  • The payments banks are not allowed to lend. Hence, a tie-up with banks will help them source loans for their customers.

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    Discussion

  • Manas   -Posted on 22 Apr 16
    Paytm is not a 'Payments bank'. Paytm along with other similar entities (Like airtel and idea bill payment platforms) might be helping in payment's but they are not 'Payments Bank'. They are a digital wallet.

    Vijay Shekhar Sharma, the owner of Paytm, has applied to the RBI for Payments Bank License along with others.

    On 19 August 2015, the Reserve Bank of India gave "in-principle" licences to eleven entities to launch payments banks:

    - Aditya Birla Nuvo
    - Airtel M Commerce Services
    - Cholamandalam Distribution Services
    - Department of Posts
    - FINO PayTech
    - National Securities Depository
    - Reliance Industries
    - Dilip Shanghvi, Sun Pharmaceuticals
    - Vijay Shekhar Sharma, Paytm
    - Tech Mahindra
    - Vodafone M-Pesa

    The "in-principle" license is valid for 18 months within which the entities must fulfill the requirements. They are not allowed to engage in banking activities within the period. The RBI will consider grant full licenses under Section 22 of the Banking Regulation Act, 1949, after it is satisfied that the conditions have been fulfilled.

    Airtel becomes the first to fulfill all the conditions and apply for final license and get the final approval.
  • Shubh   -Posted on 21 Apr 16
    Hie, wasnt it Paytm to get the first approval ?
    please reply

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