Aditya Birla Nuvo in JV with Idea for payments bank

The Aditya Birla Group on Friday took a step closer to setting up its payments bank by incorporating a subsidiary, Aditya Birla Idea Payments Bank Ltd.

The new entity is a joint venture, with Aditya Birla Nuvo Ltd (ABNL) holding 51-per cent stake and Idea Cellular Ltd holding the rest, ABNL said in a filing to stock exchanges.

Last year, the Reserve Bank of India (RBI) gave in-principle approval to 11 entities to open payments banks, including Aditya Birla Nuvo Ltd, Airtel M Commerce Services Ltd and India Post.

Dilip Shanghvi Family and Associates, the personal investment firm of Sun Pharmaceutical Industries Ltd founder Dilip Shanghvi, has tied up with Norwegian telecom company Telenor and IDFC Ltd to start a payments bank.

Reliance Industries Ltd has entered into a partnership with State Bank of India (SBI), and Airtel M Commerce with Kotak Mahindra Bank Ltd.

This is for the first time that a central bank anywhere in the world has given licences for banks that only offer deposits.