Aditya Birla Payments Bank Limited (ABPB) was a payments bank started as a joint venture by Aditya Birla Nuvo Ltd. and Idea Cellular. 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. Payments Banks are a special category of banks that can accept deposits of up to 1 lakh but cannot give loans or credit cards.
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.
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. 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.
Aditya Birla Payments Bank earlier operated as IMCSL (Idea Mobile Commerce Services Ltd) as a brand of Idea Cellular Ltd.
Aditya Birla Nuvo Limited holds 51 percent shares while the remaining 49 percent are with Idea Cellular.
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.
- ^ 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.
- ^“Aditya Birla Idea Payments Bank begins operations”. The Economic Times. 22 February 2018. Retrieved 17 October 2018.
- ^“Aditya Birla Idea Payments Bank Limited commences operations”. 22 February 2018. Retrieved 17 October 2018.
- ^“All you need to know about payments banks”. The Hindu. 20 August 2015. Retrieved 17 October 2018.
- ^“Aditya Birla Idea Payments Bank to close operations – Times of India”. The Times of India.
- ^“Grasim gets investors’ nod to merge AB Nuvo with itself”. The Hindu Business Line. 7 April 2018. Retrieved 17 October 2018.
- ^“ABNLSELetter-april17” (PDF). 5 April 2017. Retrieved 17 October2018.
- ^“Idea Mobile Commerce to merge with Aditya Birla Idea Payments”. The Economic Times. 29 April 2016. Retrieved 17 October 2018.
- ^“Aditya Birla Group closes its banking business within 2 years of operations – ET BFSI”. The Economic Times. Retrieved 2020-07-23.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.