RBI grants "in-principle" approval to 11 Applicants for Payments Banks

The Reserve Bank of India has today decided to grant "in-principle" approval to the following 11 applicants to set up payments banks.

    1.Aditya Birla Nuvo Limited
    2.Airtel M Commerce Services Limited
    3.Cholamandalam Distribution Services Limited
    4.Department of Posts
    5.Fino PayTech Limited
    6.National Securities Depository Limited
    7.Reliance Industries Limited
    8.Shri Dilip Shantilal Shanghvi
    9.Shri Vijay Shekhar Sharma
    10.Tech Mahindra Limited
    11.Vodafone m-pesa Limited

What is meant by "in-principle" approval ??

The "in-principle" approval granted will be valid for a period of 18 months, during which time the applicants have to comply with the requirements under the Guidelines and fulfil the other conditions as may be stipulated by the Reserve Bank.

On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of "in-principle" approval, the Reserve Bank would consider granting to them a licence for commencement of banking business under Section 22(1) of the Banking Regulation Act, 1949. Until a regular licence is issued, the applicants cannot undertake any banking business.

Source : https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=34754