Aditya Birla Nuvo forms JV with Idea Cellular to apply for payment bank licence

New Delhi: Diversified firm Aditya Birla Nuvo Ltd (ABNL) today applied for the payments bank licence with the Reserve Bank of India."Aditya Birla Nuvo on February 02, 2015, submitted an application to the Reserve Bank of India for obtaining licence for setting-up Payments Bank," the company said in a BSE filing.[caption id="attachment_2020961" align="alignleft" width="380"] Reuters[/caption]As per the proposed structure, ABNL will be the promoter of Payments Bank holding 51 per cent equity capital. Idea Cellular Ltd, an Aditya Birla Group company where ABNL is largest promoter shareholder, will be hold the balance 49 percent.The company added that "the Board of Directors of ABNL has also approved that equity participation of Idea may be increased up to 60 per cent, if permitted, from time to time with approval of regulatory bodies as applicable."As per RBI guidelines on Payments Bank, they can raise deposits of up to Rs 1 lakh per individual, issue ATM/debit cards and sell simple financial products such as mutual funds and insurance products.Payment Banks would be allowed payments and remittance services through various channels.However, Payments Banks, cannot issue credit cards or undertake lending activities.PTI