Corporate TreasuryFinancial Supply ChainBank RelationshipsReliance Industries, State Bank of India sign payments bank deal

Reliance Industries, State Bank of India sign payments bank deal

A shareholder agreement for the joint venture follows a memorandum of understanding signed between the two early last year.

Indian conglomerate Reliance Industries Ltd (RIL) and State Bank of India (SBI), the country’s largest lender, have completed a shareholders’ agreement for setting up their payments bank joint venture.

“The subscription and shareholders’ agreement was signed by RIL as promoter with a 70% equity contribution and SBI as joint venture with a 30% equity on June 30, 2016,” RIL confirmed in a statement.

“All requisite regulatory and statutory approvals will now be sought for operationalising the payments bank,” RIL added in a filing to the Bombay Stock Exchange (BSE).
RIL and SBI entered into a non-binding memorandum of understanding (MoU) in February 2015 to set out principal terms for the venture.

The Reserve Bank of India (RBI) last year gave in-principle approval to 11 entities, including RIL, to open payments banks to widen the reach of banking services and push the goal of financial inclusion promoted by the government of Narendra Modi.

RIL and SBI submitted a joint application to the RBI to establish a payments bank that can offer services such as remittances and deposits but not loans. RBI granted in-principle approval to RIL as a promoter in September 2015 for going ahead

“By combining RIL’s technology, last mile reach and distribution through RIL’s telecom and retail initiatives and SBI’s banking expertise in offering financial services to millions of retail consumers and small enterprises across the country, the payments bank will work toward digitizing payments and promoting digital savings and investments products by creating a cash-less society,” RIL said.

Related Articles

De-risking trade finance operations: A transitional approach

Bank Relationships De-risking trade finance operations: A transitional approach

3m Jacco de Jong
2017's most read: Correspondent banking: still in rude health?

Bank Relationships 2017's most read: Correspondent banking: still in rude health?

4m Henry Balani
The future of banking: it’s all about sharing

Automation The future of banking: it’s all about sharing

8m Edward Berks
A ‘wait and see’ approach won’t work: US businesses must prepare for GDPR

Bank Relationships A ‘wait and see’ approach won’t work: US businesses must prepare for GDPR

8m Patrick Lastennet
Accountants ‘key business funding advisers’ to UK corporates

Bank Relationships Accountants ‘key business funding advisers’ to UK corporates

8m Graham Buck
The insecurity of fraud victims in the fight against cyber-assailants

Bank Relationships The insecurity of fraud victims in the fight against cyber-assailants

8m Keiron Dalton
Open minds will deliver the best from open banking

Automation Open minds will deliver the best from open banking

9m Erik Zingmark
Cash application: more information + more automation = unparalleled efficiency

Automation Cash application: more information + more automation = unparalleled efficiency

9m Nils Strachanowski