The proposed payments bank is a joint venture between petroleum-to-telecom conglomerate RIL and country’s largest lender State Bank of India.
The official further said the RBI is in the process of looking after the regulatory requirements and any timeline for launch of services cannot be fixed.
“There is a regulatory process. So, we have to complete that process. Permits of certain things are required and then the RBI will give approval,” the official added.
Reliance Industries was among the 11 entities that was granted an in-principle approval by the Reserve Bank in August 2015 to set the payments bank in association with SBI.
Following this, RIL and SBI entered into a joint venture agreement (70:30) in July 2016 to set up the payments bank.
“The Subscription and Shareholders’ Agreement was signed by RIL as promoter with a 70 per cent equity contribution and SBI as joint venture with a 30 per cent equity contribution on June 30, 2016,” RIL had said in 2016.
The proposed payments bank is expected to bring together the nation’s largest banking network and pan-India telecom and retail setup.
Of the 11 licence holders, three surrendered their licences in 2016, while Airtel Payments Bank and Paytm Payments Bank have already commenced their operations. The government’s postal department backed India Post Payments Bank is in the pilot stage of its services.
Payments bank typically offers services such as remittances and deposits but are not allowed to tender loans.