Bharti Airtel to spend Rs 3,000 cr to set up payments bank

Bharti Airtel Ltd, India's top wireless carrier, on Thursday unveiled a so-called payments bank, committing an initial investment of Rs 3,000 crore to build a nationwide network.

Airtel Payments Bank is the first among several such niche banks to start operations, after the central bank handed over new permits to bring financial services within the reach of millions who still lack access to formal banking.

Payments banks can take deposits and remittances but are not allowed to lend. This new set of banks is expected to increase competition in the sector by offering higher interest rates on deposits.

Several of