• by Arunima SenGupta
• 09th Sep 2020

Aditya Birla Idea Payments Bank Ceases to be a Banking Company

Aditya Birla Idea Payments Bank has been stripped of its rights to be a banking company under the Banking Regulation Act of 1949. The system had come into effect from 28 July 2020.

Aditya Birla Idea Payments Bank’s banking company status has ended under the Banking Regulation Act.

Reserve Bank of India had declared that it would proceed towards liquidation after the application of voluntary termination of business by Aditya Birla Idea Payments Bank.

For the ease of banking and to facilitate door to door banking services, the RBI had started a special payment bank service back in 2015. The existence of Aditya Birla Idea Payments Bank which was a part of this has now ended.

Aditya Birla Idea Payments Bank received the license to work as a banking company from RBI in April of 2017 and began operating from 22 February, 2018.

51% stake in the bank was owned by Grasim Industries and the rest 49 percent in Vodafone Idea Limited.