Idea targets June to start its payments bank operations
Idea Cellular itself has set a target to launch its payments in bank operations and it is signing up retailers those who sell its telecom services to make it double banking touch points to allow the customers to carry out transactions.
The company has recently received the Reserve Bank of India’s final and last approval to open its payments bank and is in a process of integrating its systems with those of the National Payments Corporation of India and the RBI. Joining with the network will allow them to facilitate interbank electronic transactions.
The company will be hoping that a significant part of its telecom subscribers to enroll for the banking services.
Sudhakar Ramasubra manian, the chief executive-designate of Aditya Bir la Idea Payments Bank said “For telephone services, we have ex a sting customer base of 20 crore…so we start off with a huge potential customer base which will be the big positive for our payments business”. They also said that they will also convert their 20 lakh retailer base across the country into banking touch points to take the financial services to the rural areas.
Payments banks are not allowed to lend but can take deposits facilitate payments and dispense payments to recipients. RBI has a devised payments banks as well as small finance banks as tools to take formal banking to the unbanked. Telecom companies like Idea and Bharti Airtel has offered a new business opportunity as they already have extensive networks across the country and also a huge potential customer base for the banking services in their existing users.
In January the telecom market leader Bharti Airtel has launched its payments bank. It is offering an interest rate of 7.25% on savings deposits to attract the customers, which has been more than that is offered by conventional banks