RIL, SBI sign shareholder agreement for payments bank JV
RIL and SBI, in February last, had entered into a non-binding memorandum of understanding to set out the principal terms
New Delhi: Reliance Industries and banking major State Bank of India have signed the shareholder agreement to set up the payments bank joint venture.
"The Subscription and Shareholders' Agreement was signed by RIL as promoter with a 70 per cent equity contribution and SBI as joint venture with a 30 per cent equity contribution on June 30, 2016," RIL said in a BSE filing today.
RIL and SBI, in February last, had entered into a non-binding memorandum of understanding to set out the principal terms. This would bring together the nation's largest banking network and pan-India telecom and retail setup, the filing said.
RIL and SBI put in a joint application to the Reserve Bank of India (RBI) to set up a payments bank that can offer services such as remittances and deposits but not loans.
RBI granted in-principle approval to RIL as a promoter in September 2015 for the setting up of the payments bank.
"By combining RIL's technology, last mile reach and distribution through RIL's telecom and retail initiatives and SBI banking expertise in offering financial services to millions of retails customers and small enterprises across the country," the filing said.
Disclosure: Firstpost is part of Network18 Media & Investment Limited which is owned by Reliance Industries Limited.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Sunil Kumar Sinha of India Ratings warned that even if the supply-side bottlenecks get restored on account of various RBI measures it may soon run into difficulties due to the lack of adequate demand
In an article about the state of India's economy, the RBI said that e-commerce and digital technologies are likely to be bright spots in India's recovery, but pre-pandemic levels of output and employment are still a long way off
Overall, the RBI has shown a welcome range in its focus last year, from financial inclusion, promoting innovation to easing payments in the pandemic.