Aditya Birla Nuvo Ltd (ABNL) on Friday announced the formation of a joint venture with group firm Idea Cellular to set up a payments bank.
A payments bank can only accept deposits and transfer money from one account to another. It can’t lend. Last year in August, the central bank had given in-principle approval to Aditya Birla Nuvo to set up a payments bank. The company, with Idea Cellular, has incorporated a subsidiary, Aditya Birla Nuvo said in a BSE filing. Aditya Birla Nuvo will hold 51 per cent of the shares and the rest 49 per cent will be held by Idea Cellular, it added.