<article>Payments technology firm <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Fino+PayTech+Ltd">Fino PayTech Ltd</a> on Wednesday said that it is tying up with Reliance Commercial Finance Ltd, prior to its payments bank launch.
Through this tie-up, Fino Paytech will provide credit to rural poor in the states of Maharashtra and Madhya Pradesh in collaboration with Reliance Commercial Finance, which is the non-banking finance subsidiary of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Anil+Ambani">Anil Ambani</a>-led Reliance Capital Ltd.</article>

Payments technology firm <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Fino+PayTech+Ltd">Fino PayTech Ltd</a> on Wednesday said that it is tying up with Reliance Commercial Finance Ltd, prior to its payments bank launch.
Through this tie-up, Fino Paytech will provide credit to rural poor in the states of Maharashtra and Madhya Pradesh in collaboration with Reliance Commercial Finance, which is the non-banking finance subsidiary of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Anil+Ambani">Anil Ambani</a>-led Reliance Capital Ltd.
The non-banking finance company will provide loans for disbursement through <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Fino+Fintech+Foundation">Fino Fintech Foundation</a>, an associate company of Fino PayTech.
A pilot project has been initiated in the districts of the Vidarbha region of Maharashtra, and Bhopal, Harda, Khandwa, Vidisha and Khargone in Madhya Pradesh, where loans will be disbursed under a joint liability group model, Fino said in a statement. As the project progresses, more districts of Madhya Pradesh and Maharashtra are expected to be added.
Reliance Commercial Finance will offer small ticket size loans to women borrowers for a tenor of up to 24 months for carrying out revenue-generating activities as part of the tie-up.
“In the pilot locations, we have already disbursed more than Rs 2.5 crore in the last couple of months. We intend to scale this up by disbursing around Rs 500 crore to 2.5 lakh customers by March 2017, covering 50 districts or 3,000 villages in the two mandated states,” Vipr Bhardwaj, executive vice president and head-lending processes at Fino PayTech, said in the statement.
“Since 2010, Fino has disbursed over Rs 1,000 crore worth of loans to more than 6 lakh rural poor across Maharashtra, Madhya Pradesh, Uttar Pradesh and Bihar,” the statement said.
In August 2015, the <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=RBI">Reserve Bank of India (RBI)</a> had given in-principle approvals to 11 applicants, including Fino PayTech, to set up payments banks. These 11 applicants were given 18 months to set up their respective payments banks, which would then receive a licence from the regulator.
Deals between lenders and those setting up payments banks are not unheard of. On Tuesday, private sector lender <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Kotak+Mahindra+Bank">Kotak Mahindra Bank Ltd</a> said that it will purchase a 19.9% stake in Airtel M Commerce Services Ltd, which had received an in-principle approval in August 2015.
Previously, the <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=SbI">State Bank of India (SBI)</a> had said that it will buy 30% stake in the payment bank venture of Reliance Industries Ltd.
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<h4>This story was first published on <a href="http://livemint.com/">Livemint</a></h4>

India: Fino PayTech ties up with Reliance Commercial Finance for payments bank venture

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