Bharti Airtel, through its wholly-owned subsidiary Airtel M Commerce Services Ltd. (AMSL), is applying for a payments bank licence with Kotak Mahindra Bank as a partner.
Kotak Mahindra Bank will acquire 19.9 per cent in Airtel m-Commerce Services. “AMSL has decided to seek conversion of its existing pre-paid payment Instrument license into a payments bank licence from the RBI pursuant to the payments banks guidelines issued by the RBI,” the telecom service operator said in a statement to the exchange. AMSL offers mobile money service under the brand name Airtel Money.
Dipak Gupta, joint MD, Kotak Mahindra Bank said, “Payment banks have the potential to leapfrog India’s financial inclusion agenda. Basic but critical services such as small savings accounts will bring a large number of low income households under the formal banking network.”