Airtel M Commerce Services, the mobile commerce division of Bharti Airtel, has been rebranded as Airtel Payments Bank and will start operations in the second quarter of the current fiscal year.

The company secured a payments bank licence from the Reserve Bank of India (RBI) in April 2016.

At present , the company offers remittance as well as semi-closed wallet services in more than 800 towns in India.

In February 2016, private sector lender Kotak Mahindra Bank acquired a 19.9% stake in the company.

Bharti Airtel MD and CEO Gopal Vittal said:"The new identity reflects our strong focus on the payments bank segment and our commitment to the Government’s vision of financial inclusion and banking services for every citizen."

Payment banks can take deposits, offer internet banking and money transfers, as well as sell insurance and mutual funds. They can issue ATM/debit cards; however, they are barred from issuing credit cards and carrying out lending services.