Upon securing license to run a network of payments banks, the company plans to partner with State Bank of India (SBI), Reuters reported.
Considered to be a new category of banks created by the country’s central bank, the payments banks can gather deposits and promote non-cash payments. However, these banks cannot lend, the news agency reported.
This program is aimed at expanding access to basic banking services in the country where majority of people still conduct cash transactions.
Reserve Bank of India, which gave two permits for full-service banks last November, has called for applications for two segments – payments banks and small finance banks.
The payments banks are aimed at providing small savings accounts and remittance services to low-income households, laborers, as well as small businesses.
Companies such as Aditya Birla Group, Airtel and Future Group have also applied for bank licenses.
RBI will take the final decision on the applications in due course, according to media sources.
Although the country has over 36 commercial banks, besides Indian subsidiaries of overseas lenders and local co-operative banks, the penetration of the banking sector is still poor than several other developing countries.
Reliance Industries operates in five major segments including exploration and production, refining and marketing, petrochemicals, retail and telecommunications.
Image: Payments banks gather deposits and promote non-cash payments. Photo: courtesy of David Castillo Dominici
