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).
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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.
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