Bharti Airtel’s subsidiary Airtel M Commerce Services (AMSL) has secured a payment bank license from the Reserve Bank of India (RBI).
The telecom company was one of the 11 entities to receive an in-principle nod to open payments banks from RBI in 2015.
The other applicants receiving the approval included Tech Mahindra, Reliance Industries, Aditya Birla Nuvo, Department of Posts, and Vodafone m-pesa.
The in-principle nod has a validity period of 18 months, during which applicants have to comply with the requirements under the guidelines and conditions stipulated by RBI.
In February 2016, Indian private sector lender Kotak Mahindra Bank acquired a 19.9% stake in AMSL.
"Pursuant to Regulation 30 of Listing Regulation, we are pleased to inform you that Airtel M Commerce Services Ltd (AMSL), a subsidiary of Bharti Airtel has been granted payments bank license from Reserve Bank of India on April 11, 2016," the telecom major said in a statement.
Payment banks can take deposits, offer internet banking and money transfers, sell insurance and mutual funds.
They can issue ATM/debit cards; however, they will be unable to issue credit cards and lend to its customers.