Aditya Birla Nuvo is forming a joint venture with Idea Cellular to form a payments bank. Aditya Birla Nuvo informed BSE that the company has set up the new subsidiary as Aditya Birla Idea Payments Bank Limited, where the company will be holding up to 51 per cent shares and the remaining 49 per cent share will be held by Idea Cellular. Payments banks are allowed to collect deposits of up to Rs 1 lakh initially per individual.
Kotak Mahindra Bank bought 19.90 per cent stake in Airtel M Commerce Services Ltd (AMSL) for Rs 98.38 crore to set up a payments bank. AMSL was one of the 11 entities that were given an ‘in-principle’ approval in August 2015 by the Reserve Bank of India for a payments bank. AMSL was incorporated in April 2010 as a 100 per cent subsidiary of Bharti Airtel Ltd. It is in the business of providing the service of semi-closed prepaid instrument and offers services under the ‘Airtel Money’ brand name.
HDFC Bank has tied up with mobile payments technology firm ToneTag and is testing a new mechanism, using ultrasonic sound waves, that will allow transferring money from a phone to a point of sales (PoS) terminal without swiping a debit or credit card. Using this, the PoS terminals can be paired with a mobile phone and once the transaction is authorised, money will be deducted from either the customer’s HDFC Bank mobile wallet Payzapp or via the mobile banking application.
Meanwhile, YES Bank has partnered with UltraCash Technologies to launch payments processing through sound waves. UltraCash utilises a patent-pending technology, through which payment data is securely transferred from one device to the other using unique ultra high frequency sound waves.
The partnership will help Ultracash to issue YES Bank-sponsored mobile wallets and employ the bank’s immediate payment service (IMPS) payments platform to enable processing of instant proximity transactions. The technology ensures that UltraCash’s ‘Tap and Pay’ works on all devices and doesn't need any special hardware to make the payment. There is no need of special near field communication (NFC) chips.
Mobile payments and e-commerce company Paytm is close to finalising technology outsourcing contracts worth Rs 125 crore to manage the back-end for its payments bank, expected to roll out in August. IT firms including Infosys, Wipro, TCS, Oracle and HP have bid for the contracts. The deals will mainly cover core banking, fraud detection and security. Oracle, Infosys and TCS are in the running for core banking services for the payments, while Wipro and TCS are in the fray for being the system integrator.
The Public Investment Board has approved the Rs 800-crore proposal from India Post for setting up a payments bank and it will be placed before the Union cabinet within a month for final approval. PIB, under the Finance Ministry, vets the investment proposals by state-run entities. The department is also in the process of finalising selection of a consultant for setting up of the India Post payments bank. The India Post payments bank will target unbanked and under-banked customers in rural, semi-rural and remote areas, with a focus on providing simple deposit products and money remittance services.