NSDL to float payments bank by May

National Securities Depository Limited (NSDL) plans to float its payments bank by May this year, and the depository has already asked for the final approval from the Reserve Bank of India (RBI) for the same, said NSDL's MD and CEO G V Nageswara Rao.

NSDL tied up with HDFC Bank to launch a completely digital loan against share product offering that would provide loans in minutes.

"We will launch the payments bank by May," said Rao, adding that it would not seek any partner to operate the bank. However, he refused to provide any further details.

NSDL was one of the 11 entities given licences to float payments bank. Three of the original applicants have already returned their licences. So far two payments banks - Airtel Payments Bank and India Post Payments Bank have been launched, while Paytm is in the process to launch its payments bank.

NSDL would float the bank as a separate entity housed within the 20-year old organisation, which first dematerialised share certificates, news agency PTI had quoted Rao in a report dated January 21. The leadership team for the bank was already identified for the bank at that time.