Aditya Birla Nuvo forms JV to open payment bank with Idea Cellular
Q. Aditya Birla Nuvo has incorpoated a new JV called Aditya Birla Idea Payments Bank Ltd with which company?- Published on 22 Feb 16a. Vodafone
b. Bharti Airtel
c. Idea Cellular
d. Aircel
ANSWER: Idea Cellular
Aditya Birla Nuvo, one of 11 entities receiving in principle approvals for setting up a payments bank from RBI has incorporated a new subsidiary for the same purpose. The 51:49 JV between Aditya Birla Nuvo and Idea Cellular is called Aditya Birla Idea Payments Bank Ltd. Aditya Birla Nuvo owns 23.26% in Idea Cellular which is its telecom subsidiary.
What is a payments bank?
As per RBI norms, payment bank can accept deposits equalling INR 1 lakh from individual customers as well as issue ATM and debit cards and offer payment and remittance services besides acting as distributor of simple financial products. Payment banks cannot carry out lending activities. Mobile telephone companies are specifically mentioned as existing business entities which can apply to set up payments banks.
