Aditya Birla Payments Bank (Ofer Abarbanel online library)

Aditya Birla Payments Bank Limited (ABPB) was a payments bank started as a joint venture by Aditya Birla Nuvo Ltd. and Idea Cellular.[1] Launched on February 22, 2018, it is the fourth payments bank to begin operations since issuance of licenses to 11 firms by the Reserve Bank of India in August 2015.[2][3] Payments Banks are a special category of banks that can accept deposits of up to 1 lakh but cannot give loans or credit cards.[4]

On 20 July 2019, Aditya Birla Payments Bank announced that it would be shutting down operations subject to the receipt of requisite regulatory consents and approval.[5]

History

Aditya Birla Nuvo (now Grasim Industries Limited) was one of the 11 entities to receive an in-principle approval by Reserve Bank of India (RBI) to set-up payments banks in India, in August 2015.[6] Post the in-principle approval, RBI had issued a license to Aditya Birla Payments Bank under Section 22 (1) of the Banking Regulation Act, 1949 to commence with the business of payments bank in April 2017.[7]

Aditya Birla Payments Bank earlier operated as IMCSL (Idea Mobile Commerce Services Ltd) as a brand of Idea Cellular Ltd.[8]

Aditya Birla Nuvo Limited holds 51 percent shares while the remaining 49 percent are with Idea Cellular.[1]

Aditya Birla Payments Bank, which was a joint venture between Aditya Birla Nuvo and Idea Cellular, discontinued its banking business within 2 years of its inceptions due to lack of funds.[9]

References

  1. ^ Jump up to:ab “Aditya Birla Nuvo forms JV with Idea Cellular for payments bank”. The Hindu Business Line. 19 February 2018. Retrieved 17 October 2018.
  2. ^“Aditya Birla Idea Payments Bank begins operations”. The Economic Times. 22 February 2018. Retrieved 17 October 2018.
  3. ^“Aditya Birla Idea Payments Bank Limited commences operations”. 22 February 2018. Retrieved 17 October 2018.
  4. ^“All you need to know about payments banks”. The Hindu. 20 August 2015. Retrieved 17 October 2018.
  5. ^“Aditya Birla Idea Payments Bank to close operations – Times of India”. The Times of India.
  6. ^“Grasim gets investors’ nod to merge AB Nuvo with itself”. The Hindu Business Line. 7 April 2018. Retrieved 17 October 2018.
  7. ^“ABNLSELetter-april17” (PDF). 5 April 2017. Retrieved 17 October2018.
  8. ^“Idea Mobile Commerce to merge with Aditya Birla Idea Payments”. The Economic Times. 29 April 2016. Retrieved 17 October 2018.
  9. ^“Aditya Birla Group closes its banking business within 2 years of operations – ET BFSI”. The Economic Times. Retrieved 2020-07-23.

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