Reliance Industries and banking major State Bank of India have signed the shareholder agreement to set up the payments bank joint venture.
"The Subscription and Shareholders' Agreement was signed by RIL as promoter with a 70 per cent equity contribution and SBI as joint venture with a 30 per cent equity contribution on June 30, 2016," RIL said in a BSE filing today.
RIL and SBI, in February last, had entered into a non-binding memorandum of understanding to set out the principal terms. This would bring together the nation's largest banking network and pan-India telecom and retail setup, the filing said.
RIL and SBI put in a joint application to the Reserve Bank of India (RBI) to set up a payments bank that can offer services such as remittances and deposits but not loans.
RBI granted in-principle approval to RIL as a promoter in September 2015 for the setting up of the payments bank.
"By combining RIL's technology, last mile reach and distribution through RIL's telecom and retail initiatives and SBI banking expertise in offering financial services to millions of retails customers and small enterprises across the country," the filing said.