Idea Payments Bank

Aditya Birla Idea Payments Bank is all set to roll out fully functional branch by the first half of this year. The payments bank is relying on the scale and brand name to attract customers. The payments bank is a combined venture between Aditya Birla Nuvo Ltd (ABNL) and Idea Cellular.

The bank will roll out its operations over 1.5 lakh touch points, an in-inbuilt United payment Interface (UPI) solution. As per RBI norms, Idea payments Banks accept deposits and open current and savings accounts. However, the bank is not permitted to lend or issue credit cards.

“It is clearly a scale game, unlike traditional banking. In traditional banking, you can put up one branch and still do well. Here, it is scale since technology platform is the same which has to accommodate many transactions. So more the transactions you accommodate, more benefit you can give to the customers,” says, Sudhakar Ramasubramanian, designated Chief Executive Officer at Aditya Birla Idea Payments Bank.

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The idea is yet to announce a tie-up with any financial institution unlike other companies like payments banks of Airtel and Jio. Presently, it is exploring partnerships with institutions based upon the intensity of transaction and size of the population.

Idea has both online and offline scale with 60-70 % of its users has feature phones. Only State Bank of India has such huge customer base.

“India Post has access to people but does not have as many customers. We are the organization where we have done the Know Your Customer (KYC) and two million retailers is the network which we have. Also, 15% of India is our existing customer base, and 200 million of 8 billion is like 3% of the world’s population,” added Sudhakar.

Also Read Paytm Payments Bank got Final Nod From RBI

Aditya Birla Idea Payments Bank and seven other companies have got final approval from the banking regulator. Airtel payments bank, PayTech, PayTM, National Securities Depository Ltd and Jio Payments Bank are the other companies who have received the final license for payments banks.