Last year in August, RBI had given in-principle approval to the company to set up a Payments Bank under the guidelines for licensing of Payments Banks.

The company jointly with Idea Cellular Ltd has incorporated a new subsidiary for the aforesaid purpose in the name and style of Aditye Birla Idea Payments Bank Ltd, Aditya Birla Nuvo Ltd (ABNL) said in a BSE filing.

ABNL will hold 51 percent shares and the rest 49 percent by Idea Cellular, it added.

Payments banks are allowed to collect deposits (initially up to Rs 1 lakh per individual), offer Internet banking, facilitate money transfers and sell insurance and mutual funds.

A total of 11 entities, including Reliance Industries, Airtel M Commerce Services Limited, Vodafone m-pesa, Tech Mahindra and Department of Posts were given 'in-principal' approval by RBI to set up such niche banks.

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