Private sector lender Axis Bank is open to partnering a payments bank and is in talks with a few aspirants for a potential partnership, according to a senior official.
The Reserve Bank of India came out with the final guidelines for payments bank last month, wherein the aspirants have been allowed to enter into joint ventures with lenders.
“We are open for a tie-up and working with a payments bank. We are in conversation with a few people (for a tie-up),” Axis Bank, President - Retail Lending, Jairam Sridharan, told PTI.
While he did not identify the parties Axis Bank is in talks with, Sridharan reiterated that the bank is “certainly” willing to forge a tie-up.
Asked about the timing of such a tie-up, Sridharan hinted that it may be done inside the deadline for application, as it will be beneficial for an applicant while submitting a business plan.
The payments bank aspirants have to apply by January 16 next year.
RBI kick-started the process of differentiated banking with the release of final guidelines for operationalising the payment banks and small finance banks, which are aimed at deepening financial inclusion. The payment banks are aimed at encouraging savings and help customers with remittances.
There is a cap on the stake which can be held by commercial banks in a payment bank.
Existing non-bank lenders, pre-paid payment instrument issuers, corporate business correspondents, mobile telephone companies and super market chains have been allowed by RBI to enter the fray.
Axis Bank’s network spanned 2,505 branches and 13,146 ATMs as on September 30, 2014.