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| Exchange Disseminated Time | Idea Cellular Ltd has informed BSE that Reserve Bank of India (RBI) had issued Guidelines for Licensing of Payments Bank on November 27, 2014 (Payments Bank Guidelines).
Aditya Birla Nuvo Limited (ABNL) is a promoter and largest shareholder of Idea Cellular Limited (Idea).
ABNL has on February 02, 2015 submitted an application to the RBI for grant of License for setting-up "Payments Bank", in accordance with the Payments Bank Guidelines in which process Idea is partnering with ABNL. ABNL would hold 51% equity in the Payments Bank, which is proposed to be registered as “Idea Payments Bank Limited”.
The Board of Directors of Idea has approved participation in the Payments Bank upto 49% under the automatic route and upto 60% or as permitted from time to time with approval of regulatory bodies as applicable.
A wholly owned subsidiary of Idea “Idea Mobile Commerce Services Limited (IMCSL)”, which is part of the promoter group, has a current authorisation from RBI to issue Prepaid Payment Instruments (PPI Issuer). As per the Payments Bank Guidelines, a PPI Issuer cannot co-exist within the same promoter group. Hence, in case the Payments Bank license is granted to ABNL, then the business carried on by the PPI Issuer will be folded into such Payments Bank. |
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