Firms to start payments bank operation before 18-mth deadline

Paytm founder Vijay Shekhar Sharma said he would like to start the banking operation ahead of the fixed timeline by the RBI

Enthused by the grant of payments bank licence, the successful applicants today said they would launch the services ahead of the 18-month deadline prescribed by the Reserve Bank.

Paytm founder Vijay Shekhar Sharma, one of the successful applicants, said he would like to start the banking operation ahead of the fixed timeline by the RBI.

"We definitely want to launch payment bank much earlier than 18 months. We believe that we can go standalone. We won't need anybody else as far as money is concerned," Sharma said.

"With this nod from the RBI we will be able to further drive overall commitment to financial inclusion for the unbanked segment, modernise payment systems and build more trust for our services," he added.

NSDL CEO & MD G V Nageswara Rao said the firm would like "to go alone but keeping options open".

"We don't have any specific timeline to share with you but the real work starts now," he said.

It is definitely going to be different niches which different people are going to pick and it will help promote financial inclusion, Cholamandalam Investment and Finance Managing Director Vellayan Subbiah said.

Sun Pharma promoter Dilip Shanghvi along with Telenor Group and IDFC, an infrastructure financial institution, applied and emerged successful bidder out of 41 entities.

"We believe that payment bank facilities is a step in the direction of enabling last-mile connectivity to consumers by offering convenience of carrying banking transactions at their doorstep. We will provide further details at a later stage," Dilip Shanghvi Family & Associates (DSA) said in a statement.

DSA is the main promoter in the application along with Telenor Group and IDFC.

Vodafone India MD & CEO Sunil Sood said in a statement the licence will enable the firm to build on this further and "offer a more comprehensive portfolio of banking and financial products and services, accelerating India's journey into a cashless economy".

Telecom major Airtel in a statement said Airtel M Commerce Services will play a pivotal role in bringing millions of unbanked Indians into the folds of banking.

The RBI today granted 'in-principle' approval to 11 entities including Reliance Industries, Aditya Birla Nuvo, Department of Posts and Tech Mahindra, to set up payments banks and proposes 'on tap' such licences in future.