Norway-based telecom operator Telenor, along with a strategic Indian investor and IDFC, has applied for a payments bank licence in India. The Payments Bank guidelines, as notified by the Reserve Bank of India (RBI), limit the foreign holding at 74 per cent in a company. Telenor has thus partnered with local partners to provide this service. Telenor is the fourth telecom operator after Bharti Airtel, Vodafone India and Idea Cellular to apply for such a permit.
Payment banks are expected to be established in the rural, remote areas of the country, offering critical services such as money transfers and deposit collection. According to the guidelines, payments banks can accept demand deposits subject to a cap of Rs 100,000 per customer and provide payment and remittance services through channels like Internet, branches, business correspondents and mobile banking. However, companies with payments bank licence will not be permitted to lend funds.
