RBI gave in-principle approvals for 11 new payment banks in India today. As per the press release from RBI, the list is as below:
Below is a list of successful applicants, out of a total of 41.
Aditya Birla Nuvo Limited
Airtel M Commerce Services Limited
Cholamandalam Distribution Services Limited
Department of Posts
Fino PayTech Limited
National Securities Depository Limited
Reliance Industries Limited
Shri Dilip Shantilal Shanghvi
Shri Vijay Shekhar Sharma
Tech Mahindra Limited
Vodafone m-pesa Limited
They have 18 months to go-live. Double-digit approval shows the seriousness with which RBI is looking to drive the financial inclusion and less-cash agenda. Given the restrictions RBI had proposed in the guidelines when calling for an application, a minimum 3-5 year cash burn is expected in this business.
RBI will hopefully release soon the list of in-principle approval for small finance banks, where the applicant count was much higher at 72. Assuming another 10-15 approvals from that, we are looking at about 20-25 new possible entities that will offer banking services on the anvil. The inability of payment banks to offer credit means that they need to earn largely on various types of fees, sometimes for services that are provided for free by scheduled commercial banks. New fintech innovations will flourish and hopefully these services will not be too expensive for the "banked but not banking" or "unbanked" customers to adopt. Too early to say whether it will make a material impact on the proportion of cash in the economy, but ease of service (even at a cost) will hopefully drive adoption.
Below is a list of successful applicants, out of a total of 41.
Aditya Birla Nuvo Limited
Airtel M Commerce Services Limited
Cholamandalam Distribution Services Limited
Department of Posts
Fino PayTech Limited
National Securities Depository Limited
Reliance Industries Limited
Shri Dilip Shantilal Shanghvi
Shri Vijay Shekhar Sharma
Tech Mahindra Limited
Vodafone m-pesa Limited
They have 18 months to go-live. Double-digit approval shows the seriousness with which RBI is looking to drive the financial inclusion and less-cash agenda. Given the restrictions RBI had proposed in the guidelines when calling for an application, a minimum 3-5 year cash burn is expected in this business.
RBI will hopefully release soon the list of in-principle approval for small finance banks, where the applicant count was much higher at 72. Assuming another 10-15 approvals from that, we are looking at about 20-25 new possible entities that will offer banking services on the anvil. The inability of payment banks to offer credit means that they need to earn largely on various types of fees, sometimes for services that are provided for free by scheduled commercial banks. New fintech innovations will flourish and hopefully these services will not be too expensive for the "banked but not banking" or "unbanked" customers to adopt. Too early to say whether it will make a material impact on the proportion of cash in the economy, but ease of service (even at a cost) will hopefully drive adoption.
Ce site de blog est en fait précieux. nous fournissons un service d'investissement à un prix abordable. Pour plus d'informations, visitez notre site EHPAD
ReplyDelete