India Post, Reliance Industries,Bharathi Airtel Vodafone and Paytm are among 11 applicants that have got 'in principle' approval for setting up payments banks that will provide barebones facilities aimed at covering the vast swathe of population that has no access to financial services. They will take deposits, convey remittances and dispense payments to recipients, making them ideal for migrant workers who need to send money home, for instance. They will not engage in lending. Apart from India's top phone companies and the post office, others that have got initial Reserve Bank of India approval out of 42 applicants include Sun Pharma founder Dilip Shanghvi, Aditya Birla, Fino PayTech, Tech Mahindra, National Securities Depository and Cholamandalam Finance.
Applicants that sought licences have tied up with a range of partners. "The applications were screened for financial soundness, i.e., five-year track record of the promoter and the key entities of the promoter group," RBIsaid in a statement. "The assessment also included governance issues with a focus on 'fit and proper' criteria for promoters based on due diligence reports and/or any other information indicating deliberate and repeated violations of law/regulations."
Those that didn't make the cut include Muthoot Finance, Future Retail's Kishore Biyani and Videocon. The central bank chose the applicants based on their assessed ability to reach customers with technology along with the financial strength to roll out services in areas that remain uncovered, RBI said.
Applicants that sought licences have tied up with a range of partners. "The applications were screened for financial soundness, i.e., five-year track record of the promoter and the key entities of the promoter group," RBIsaid in a statement. "The assessment also included governance issues with a focus on 'fit and proper' criteria for promoters based on due diligence reports and/or any other information indicating deliberate and repeated violations of law/regulations."
Those that didn't make the cut include Muthoot Finance, Future Retail's Kishore Biyani and Videocon. The central bank chose the applicants based on their assessed ability to reach customers with technology along with the financial strength to roll out services in areas that remain uncovered, RBI said.
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