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Mahindra Finance is likely to hold up to 50 per cent stake in the proposed Payment Bank, for which a group entity has applied for a licence from RBI.
Tech Mahindra, a subsidiary of Mahindra & Mahindra, has applied to the Reserve Bank for a permit to set up Payment Bank, the licences for which are expected to be granted in the next few months.
“The board has expressed desire for Payment Bank. The board resolution says anything up to 50 per cent. No final decision has been taken,” Mahindra Finance MD & CEO Ramesh Iyer told PTI.
Tech Mahindra is among the 41 applicants who are vying for a Payment Bank licence from the RBI. Other big corporates, including RIL, too have applied for a licence.
Guidelines for this niche category Payment banks was framed by the RBI in November last year.
Payment banks would be allowed payments and remittance services through various channels. However, such lenders, cannot issue credit cards or undertake lending activities.
Such banks will initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer and will be allowed to issue ATM/debit cards.
These banks are aimed at encouraging savings and help with the remittances.
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