Lanchpad

Vodafone applies to RBI for payments bank licence

Vodafone has joined the long list of companies to seek licence as a payments bank in India. The telecom major is reported to have filed an application with the Reserve Bank of India (RBI) for the same.

According to a report on Medianama, the company is exploring options for partnerships and would look to leverage its telco experience in the mobile payments space.

The RBI deadline for accepting payments bank applications ended on 2nd February. The Bank is said to have received over 40 applications by the deadline.

Vodafone has joined the long list of companies to seek licence as a payments bank in India. The telecom major is reported to have filed an application with the Reserve Bank of India (RBI) for the same.

According to a report on Medianama, the company is exploring options for partnerships and would look to leverage its telco experience in the mobile payments space.

The RBI deadline for accepting payments bank applications ended on 2nd February. The Bank is said to have received over 40 applications by the deadline.

“Previously, Vodafone subsidiary Vodafone M-Pesa Limited (VMPL) has received a three year renewal of its prepaid wallet license in November last year. Prior to this, Vodafone had a two-year license through its subsidiary Mobile Commerce Solutions Ltd which expired the same month. The company will have to merge its prepaid wallet business  if it gets a  payments bank licence,” says the Medianama report.

Vodafone India had also signed a strategic partnership with Bharat BPO, a Spice Digital group company to integrate M-Pesa as one of the payment options for Bharat BPO’s SMS railway ticket booking service in September last year. Following this partnership, writes Medianama, Vodafone M-Pesa customers could send in their booking details either via SMS or through the 139 Railways Reservation app on Android or Java and enter their ‘M-PIN’ to authorize the transaction.

Among the companies that have applied for licence for payments bank are Airtel’s mobile commerce subsidiary Airtel M Commerce Services Limited (which operates Airtel Money), Reliance Industries Limited (which has submitted a joint application with State Bank of India), alternate banking channel provider FINO PayTech and Idea Cellular, among others.

In addition, mobile wallet firms such as Paytm and MobiKwik are also said to have applied for payments bank licences.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close