<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Aditya+Birla+Group" target="_blank">Aditya Birla Group</a> on Friday took a step closer to setting up its payments bank by incorporating a subsidiary, Aditya Birla Idea Payments Bank Ltd.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Aditya+Birla+Group" target="_blank">Aditya Birla Group</a> on Friday took a step closer to setting up its payments bank by incorporating a subsidiary, Aditya Birla Idea Payments Bank Ltd.
The new entity is a joint venture, with <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Aditya+Birla+Nuvo" target="_blank">Aditya Birla Nuvo Ltd</a> (ABNL) holding 51% stake and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=idea+cellular" target="_blank">Idea Cellular Lt</a><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=idea+cellular" target="_blank">d</a> holding the rest, ABNL said in a filing to stock exchanges.
Shares of ABNL gained 0.41% to close at Rs.740.50 apiece on Friday and those of Idea Cellular gained 0.65% to end at Rs.108.40 per share on the BSE Ltd, while the benchmark Sensex gained 0.25% to close at 23709.15 points.
Last year, the <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Reserve+Bank+of+India" target="_blank">Reserve Bank of India</a> (RBI) gave in-principle approval to 11 entities to open payments banks, including Aditya Birla Nuvo Ltd, Airtel M Commerce Services Ltd and the Department of Posts.
Dilip Shanghvi Family and Associates, the personal investment firm of Sun Pharmaceutical Industries Ltd founder Dilip Shanghvi, has tied up with Norwegian telecom company Telenor and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=IDFC+Ltd" target="_blank">IDFC Ltd</a> to start a payments bank.
Reliance Industries Ltd has entered into a partnership with <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=State+Bank+of+India" target="_blank">State Bank of India</a> (SBI), and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Airtel+M+Commerce" target="_blank">Airtel M Commerce</a> with <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Kotak+Mahindra+Bank" target="_blank">Kotak Mahindra Bank Ltd</a>.
This is for the first time that a central bank anywhere in the world has given licences for banks that only offer deposits.
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This story was first published on <a href="http://livemint.com/">Livemint</a>

India: Aditya Birla Nuvo, Idea Cellular to jointly set up payments bank

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