India Post has received payments bank licence from the Reserve Bank of India, and is looking to start the rollout of banking operations commercially under the permit.
India Post Payments Bank is the third entity to receive payments bank permit after Bharti Airtel and Paytm. Payments banks can accept deposits up to INR 1 lakh per account from individuals and small businesses. It will be set up as a differentiated bank and will confine its activities to acceptance of demand deposits, remittance services, Internet banking and other specified services.
That said, Tech Mahindra, a consortium of Sun Pharmaceutical Industries Ltd promoter Dilip Shanghvi, IDFC Bank Ltd and Telenor Financial Services and Cholamandalam Investment and Finance Co. backed have dropped their plan to roll out payments bank.
The others looking to setup payments bank are – Aditya Birla Nuvo, Fino PayTech, National Securities Depository, Reliance Industries Ltd and Vodafone m-pesa.