Mumbai : As Vodafone India and Idea Cellular work towards a proposed merger, the Reserve Bank of India is likely to allow just one payments bank to emerge from this, even though both groups have individually received in-principle licence for payments bank, a senior industry official told Cogencis.
“If they want to go for a merger, they can, but only one payments bank licence will remain valid. They will have to approach RBI with a clear proposal on which licence they intend to move ahead if a merger materialises, as announced,” the official said.
Vodafone Group plc and Aditya Birla group are in talks for an all-share merger of Vodafone India Ltd with Idea Cellular Ltd, which could lead to both companies having an equal stake in the merged entity.
Aditya Birla Nuvo Ltd and Idea Cellular have already announced that Aditya Birla Idea Payments Bank will launch operations in the first half of 2017. Aditya Birla Nuvo owns 51% in the bank, while Idea holds 49%, but as envisaged under the group restructuring, Aditya Birla Nuvo’s stake and the bank will move under the Aditya Birla Financial Services banner.
On the other hand, as per media reports, Vodafone India had said it would launch its payments bank by March. The industry source said so far RBI had not initiated any formal communication from its end, but was waiting to see what Aditya Birla Group and Vodafone India have to say on their final plans on payments bank.
