Comments
Fino PayTech, a payments bank licensee, has appointed KPMG as consultant to advice it on project execution (converting to a payments bank) and IFC CGAP for ‘strategic inputs in niche areas’, Rishi Gupta, Managing Director and CEO, said.
The payments bank is expected to be operational before the end of this calendar year. The launch date would depend on three milestones: fund raising; formal regulatory approvals and technology readiness, Gupta said.
Fino PayTech expects to raise between ₹400 crore and ₹500 crore which will simultaneously dilute the foreign shareholding in the company to below 49 per cent to comply with the RBI licensing conditions. The company is in talks with a number of private equity investors. It has appointed JM Financial to help with fund raising.
Gupta said that ICICI Bank (which holds a significant stake in Fino PayTech) would be its partner bank for support in deposits, cash management, manpower and technology. Gupta said although Fino PayTech already offers a variety of other services, including recharges for mobiles, utility bill payments, ticket booking, insurance distribution, and assisted online shopping, among others, it would still take some time to transition from a non-regulated entity to a regulated entity.
Gupta said that the fast-growing remittances on the retail platform (which had doubled in the past five months to about ₹300 crore every month) augurs well for the payments bank.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.