State Bank of India and Reliance Industries (RIL) have signed the subscription and shareholders agreement for setting up a payments bank joint venture.
Under the agreement, RIL is the promoter with a 70% equity contribution, while SBI will be the joint venture partner with 30% equity investment.
Both the sides entered into a non-binding memorandum of understanding in February 2015 to set out the principal terms for the venture.
The Reserve Bank of India last year granted in-principle approval to RIL and 10 other entities to open payments banks.
In a filing to the Bombay Stock Exchange, RIL said: "All requisite Regulatory and Statutory approvals will now be sought for operationalizing the Payments bank.
"By combining RIL’s technology, last mile reach and distribution through RIL’s telecom and retail initiatives and SBI’s banking expertise in offering financial services to millions of retail consumers and small enterprises across the country, the payments bank will work toward digitizing payments and promoting digital savings and investments products thereby acting as a catalyst in creating a cash-less society."