Reader's Poll

Which of the following technologies/concepts are likely to witness significant traction this year?
Any data to show


Tele Data

Mobile Subscribers Yearwise comparision

Aditya Birla Group planning to sell around 20 per cent stake in Idea Payments Bank

April 20, 2018
E-mail Print PDF

The Aditya Birla Group is planning to sell a minority stake of around 15 per cent – 20 per cent in Idea Payments Bank in order to raise about Rs 2 billion.

The payments bank, in which Idea Cellular and Aditya Birla Nuvo own 51 per cent and 49 per cent respectively, will use the money to expand its operations. The company has been facing difficulty in setting up and launching operations.

Idea's payments bank, the latest entrant in the space, began operations in February 2018. Bharti Airtel was the first telecom operator to begin payments bank operations in November 2016.

The Reserve Bank of India (RBI) has been pushing for the payments bank model by offering services such as small savings accounts, payment or remittance services to migrant labour workforce, low income households, small businesses, unorganised sector entities as well as other users to push for further financial inclusion.

Unlike regular banks, payment banks cannot give loans, or issue credit cards, but can accept deposits up to Rs 100,000. Such entities primarily survive on fee income since 75 per cent of their deposits have to be mandatorily invested in government bonds with maturity of up to a year. These banks will have to offer aggressive rates to mobile deposits against competition from commercial banks.

  • Most Viewed
  • Most Rated
  • Most Shared
  • Related Articles
 Your cart is empty

Monday morning

Monday morning