Private sector lender Kotak Mahindra Bank has acquired 19.9 per cent stake in Airtel M Commerce, for Rs 98.38 crore.
Airtel M Commerce, a wholly-owned subsidiary of Bharti Airtel, had won an in-principle licence from the Reserve Bank of India for setting a payments banks. Kotak had tied up with Bharti Airtel in January last year, which was at the application stage.
It was among 11 players, of 42 applicants, that were granted the in-principle licence last year.
Payments banks can accept deposits of up to Rs 1 lakh and can offer current and savings account deposits.
They can issue debit cards and offer internet banking but are not allowed to lend or issue credit cards.
(Kotak Mahindra and associates are significant shareholders in Business Standard Private Limited)