RIL said that payments bank licence would benefit or leverage its telecom business and tie-up with SBI will help in creating an extensive distribution network in India.
Reports say that the State Bank of India will hold almost 30% stake in the payments bank (non-lending) of Reliance Industries Ltd.
The company said that on August 19, it received an approval from the Reserve Bank of India for setting up a payments bank.
SBI and RIL had applied for the licence of Payments Bank. RIL is the promoter, and on the other hand, SBI is the joint venture partner.
The licence for Payments bank will allow the companies to offer Internet banking, collect deposits of almost Rs 1 lakh per individual initially, sell insurance and mutual funds, issue ATM/debit cards (not credit cards) and facilitate money transfers.
Only 11 entities were granted in-principal approval from RBI for the Payments Bank, RIL was one of them.
Further, RIL is planning to launch JioMoney that will be a prepaid payment instrument which will foster cashless payments across multiple-use cases.
The payments bank that has not been named is reported to leverage Reliance telecom network as well as its online and offline retail business model.
SBI Chairman said that the RIL and SBI, in a Public-Private partnership have joined hands to complete their mission for making India’s financial services digitally smart.