Telecom operators, Telenor and Vodafone are planning to apply for payment banking permits in India. The companies are reported to be in discussions for hiring a local partner each as the prevailing guidelines do not allow foreign entities to fully own a payment bank. The payment bank guidelines limit foreign holding at 74 per cent.
Industry experts believe that Telenor and Vodafone?s global experience in mobile banking, especially in developing countries, make them ideal candidates for the permits. While Telenor provides mobile banking services in Pakistan, Bangladesh, Malaysia and Thailand and mobile payment service in Hungary, Vodafone has experience in payment banking in Africa and Asia.
Payment banks are being introduced in the rural and remote areas of the country for offering limited but critical services such as money transfers, loans and deposit collection.
