The Reserve Bank of India (RBI) has given ‘in-principle’ approval to 11 payment banks applicants.

The applicants receiving the approval include Aditya Birla Nuvo, Reliance Industries, Airtel M Commerce Services, Vodafone m-pesa, Tech Mahindra, Cholamandalam Distribution Services, Department of Posts, Fino PayTech, National Securities Depository, Shri Dilip Shantilal Shanghvi, and Shri Vijay Shekhar Sharma.

The ‘in-principle’ nod will have an 18-month validity period, during which applicants have to meet the requirements under the guidelines and fulfil other conditions as may be stipulated by RBI.

Payment banks will be able to take deposits, provide internet banking, enable money transfers as well as sell insurance and mutual funds.

They can issue ATM/debit cards, though not credit cards and will also not be able to lend to its customers.

The banks will have to invest 75% of its funds in government securities and take savings deposits of up to INR100,000 ($1,527.4) per customer.

The minimum capital required to set up such banks has been kept at INR1bn ($15.2m).