Aditya Birla, Future Group apply for payments bank licences

Aditya Birla Nuvo, the telecoms investor, and retailer Future Group were among the first big names to apply for licences to run proposed payments banks, under rules meant to put basic banking services within the reach of hundreds of millions.

The deadline for applications to run payments banks, which cannot lend, and also for permits to run small finance banks is Monday.

Concerned authorities, including the Reserve Bank of India (RBI) which will award the licences, hope the permits will further financial inclusion in the country, where nearly half the population does not have access to formal banking.

Aditya Birla Nuvo, which is the biggest shareholder in Idea Cellular, the country's third-biggest cellular carrier, said it plans to own 51 per cent of the payments bank, while Idea will own the remainder. Idea can later raise its holding to 60 per cent.

Future Group, one of the biggest domestic retailers, also said it had applied on Monday for a payments bank permit.

Earlier, Bharti Airtel - the top telecommunications carrier in the country, has said it would apply.

Dozens of companies are expected to bid, as the country hopes networks of mobile phone vendors, fuel stations and corner stores can extend the reach of the banking system.

(Reuters)