Reliance Industries Ltd and State Bank of India has formed a joint venture for setting up of payments bank, on Friday. RIL said that it has signed the Subscription and Shareholders Agreement with SBI for setting up of payments bank.

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As per the BSE filing, under the JV, RIL, as a promoter, it will hold 70% of the stake and SBI will hold the remaining 30% of the stake.

"RIL and SBI in-principle agreed to partner and explore the opportunity of fulfilling the needs of the unbanked and under-banked segments by providing relevant financial services products. To that effect, RIL and SBI had entered into a non-binding memorandum understandings in February 2015 to set out the principal terms", said Reliance in a regulatory filing.

Last year in September, the Reserve Bank of India had granted an 'in-principle' approval to Mukesh Ambani-led RIL as a promoter for setting up of payments bank under Banking Regulation Act, 1949 and as per Guidelines for Licensing of "Payments Bank" dated November 27,2014.

As per the regulatory filing, by combining RIL's technology and Telecom & Retail initiatives and SBI, the payments bank will work towards "digitising payments and promoting digital savings and investment products thereby acting as a catalyst in creating a cash-less society".

Read our full coverage on Payments Bank here