ICICI Bank will partner FINO PayTech to foray into the payments bank space.
ICICI Bank joins some of the leading lenders of the country which have partnered with payments banks that have received licence from the banking regulator. For example, State Bank of India and Kotak Mahindra Bank have picked up stake in the payments banks that will be floated by Reliance Industries and the Bharti Group, respectively.
The ICICI Group, with about 16 per cent stake in FINO Paytech, a business correspondent, is the largest domestic shareholder.
FINO Paytech has received ‘in principle’ licence from the Reserve Bank of India (RBI) to start a payment bank.
RBI regulations allow universal banks to invest up 30 per cent in payments bank.
RBI regulations also mandate 51 per cent of the equity of the payments bank should be with domestic entities, In FINO PayTech, about 70 per cent stake is with foreign entities.
Current Affairs: 7th January, 2016 Current Affairs Round up December, 2015.
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