Indian private sector lender Kotak Mahindra Bank has acquired a 19.9% stake in Airtel M Commerce Solutions (AMSL), which is expected to launch its payments bank services this year.
Kotak bought the stake in AMSL, a wholly-owned subsidiary of Bharti Airtel, for INR983m ($14.3m).
AMSL was one of the 11 payment bank applicants to receive in-principle approval from the Reserve Bank of India (RBI) in August 2015 for setting up payment banks.
Kotak had joined forces with Bharti Airtel in January 2015, which was at the application stage.
Payment banks will be able to take deposits, offer internet banking and money transfers, as well as sell insurance and mutual funds.
The banks can also issue ATM/debit cards, though not credit cards, but will not be able to lend to its customers.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData