The existence of this payment bank ended in just 3 years, RBI announced

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Payment Bank debuted in 2015

In order to provide banking services door-to-door in the country, the Reserve Bank of India started special payment bank service in the year 2015. Under this, the RBI had issued licenses for banking to many companies. The existence of one of these payment banks is now over. Let’s know about it.

ABIPBL launches in 2018

Actually, the status of the banking company of Aditya Birla Idea Payments Limited (ABIPBL), which started business in February 2018, has ended. The Reserve Bank of India gave this information on Thursday.

Voluntary application

In November last year, the Reserve Bank had told that an application has been given to voluntarily terminate the business of Aditya Birla Idea Payments Bank. Only after this, the RBI has taken this decision.

Effective 28 July 2020

The central bank said in a notification, “The status of Aditya Birla Idea Payments Bank under the Banking Regulation Act 1949 has now expired as a banking company. This system has come into effect from 28 July 2020. “

Why closed

Aditya Birla Idea Payment Bank had said that it is not possible to carry on business due to lack of expected success. Explain that Grasim Industries Limited had 51 percent stake in Aditya Birla Idea Payments Bank and 49 percent stake of Vodafone Idea Limited.

What is a payment bank?

In fact, the purpose of launching payment banks is to connect small savings account holders, low income households, unorganized sector, migrant laborers and small businessmen with banking services.

Allow them to start a payment bank

For this, the RBI has allowed non-banking financial corporation, mobile phone service companies or super market chains etc. to start a payment bank.

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