Kotak Mahindra Bank on Tuesday said that it has bought 19.90% stake in Airtel M Commerce Services Ltd (AMSL) for Rs.98.38 crore to set up a payments bank.
AMSL was one of the 11 entities that were given an ‘in-principle’ approval in August 2015 by the Reserve Bank of India for a payments bank. Kotak Mahindra Bank had announced in January 2015 its intention to buy a stake in the Bharti group’s company. AMSL was incorporated in April 2010 as a 100% subsidiary of Bharti Airtel Ltd. It is in the business of providing the service of semi-closed prepaid instrument and offers services under the ‘Airtel Money’ brand name.