Two more players have joined the race for small finance and payments bank licence, just a couple of days ahead of the expiry of the RBI set deadline.
Business Correspondent firm Fino Paytech has applied to become a payments bank and housing finance provider Dewan Housing Finance to become a small finance bank.
The RBI has called for applications for small and payments bank licences with the aim of furthering financial inclusion in the country. The last date for application for licences is February 2.
On Thursday, Airtel Money tied up with Kotak Mahindra Bank with the intention to set up a payments bank. Rishi Gupta, COO & ED, Fino Paytech, said, “As business correspondent for banks, we have been providing access to banking services in remote rural locations…Given this background, we feel becoming a payments bank is a natural progression for us as we move from servicing the customers to owning them.”
In a notice to the Bombay Stock Exchange, DHFL said that if it is granted a licence, it will convert itself into a small bank with the vision to emerge as a “Big Bank for Small Finance.” It might well take the RBI about three to four months to vet all the applications it receives and declare the names of successful entities.