RBI had given an in-principle approval to set-up the Payments Bank to Aditya Birla Nuvo Limited (ABNL), as promoter on 7th September, 2015. The proposed Payments Bank will be a 51:49 joint venture (JV) between ABNL and Idea Cellular. The JV will apply to RBI for the final grant of license which will be subject to fulfilment of certain regulatory pre-requisites. The JV partners in the meantime are gearing to launch Consumer Services by the second half of the Calendar Year 2016 and intend to capitalise on the strength of Idea's 2 Million+ retail distribution channel across 375,000 towns & villages and ABNL's experience of successfully promoting and scaling up a number of consumer centric businesses.

2nd February 2015

Aditya Birla Nuvo Ltd. (ABNL) has informed stock exchanges that it has today submitted an application to the Reserve Bank of India ('RBI') for obtaining license for setting-up 'Payments Bank', in accordance with the Guidelines for Licensing of Payments Bank issued by RBI on November 27, 2014.

As per the proposed structure, ABNL will be the Promoter of the Payments Bank, holding 51% of its equity capital. Idea Cellular Limited ('Idea'), an Aditya Birla Group company where ABNL is the largest promoter shareholder, will be holding balance 49% of equity capital in the proposed Payments Bank.

The Board of Directors of ABNL has also approved that equity participation of Idea in the proposed Payments Bank may be increased up to 60%, if and when permitted from time to time with approval of regulatory bodies as applicable.

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