More companies plans to set up payment banks

Shiv Kumar

Tribune News Service

Mumbai, May 24

With more companies withdrawing their applications to set up payments banks, the Reserve Bank of India has expressed unhappiness at the development.

RBI Deputy Governor SS Mundra told reporters on Monday that the central bank of India was upset at companies withdrawing their applications. “We would certainly feel a little aggrieved because a lot of effort on the part of RBI goes in processing these applications,” Mundra said.

Among those who applied for payments bank licences and then withdrew the application include some big names in industry. On Tuesday, Tech Mahindra said it was bowing out of the race to set up a payments bank after applying for the same. Last week, Dilip Shangvi of Sun Pharma, who had applied to set up a payments bank with IDFC Bank and Telenor, bowed out.

Even before that, the South-based Cholamandalam group had withdrawn its application.

Last year, the RBI had given in-principle approval to a number of applicants, including the Department of Posts, Aditya Birla Nuvo, Airtel M Commerce Services, Fino PayTech, National Securities Depository, Reliance Industries, Tech Mahindra, Cholamandalam, the Shanghvi-led group, Paytm and Vodafone m-pesa, for setting up payments banks.

With some big names withdrawing, RBI Deputy Governor Mundra felt the central bank may levy a processing fee on those applying for licences in order to cover its costs in future.

The RBI had received 41 applications to set up payments bank in February 2015.