Reliance Industries Limited (RIL) on Monday said it has applied for a Payments Bank licence, where the company will be the promoter and State Bank of India will be its joint venture partner with an equity investment of up to 30%.
Reliance in its statement said that the partnership is in accordance with the guidelines for Payments Bank issued by RBI and subject to grant of licence by the central bank.
“The partnership brings together the combined strengths of two of India’s Fortune 500 corporations committed to making a transformative impact on India’s financial inclusion landscape,” the Reliance statement said.
The Payments Bank will leverage SBI’s nationwide distribution network and risk management capabilities along with the substantial investments made by Reliance Industries in its retail and telecom businesses.
The joint venture will use state-of-the-art technology, build scalable infrastructure and create extensive branch and business correspondent network in order to provide last-mile access and intuitive user experience to all sections of society.
Both the partners see formation of the Payments Bank as an opportunity to lead and co-create an eco-system for accessible and affordable banking solutions. The statement also said that the proposed payments bank will digitize payments and act as a catalyst towards a cashless society.