Question

The Aditya Birla Idea Payments Bank has started operations. As per which section of the Banking Regulation Act $1949$, the RBI issued licence to the bank?

• A. Section $23\left(1\right)$
• B. Section $24\left(1\right)$
• C. Section $22\left(1\right)$
• D. Section $21\left(1\right)$

Answer 1

Answer: (C)

Section $22\left(1\right)$

The Aditya Birla Idea Payments Bank Ltd (ABIPBL) has become the 5th entity to begin operations as a payments bank with effect from February 22, 2018. The ABIPBL is a joint venture between Aditya Birla Nuvo Ltd (51%) and Ideal Cellular (49%). The Reserve Bank of India (RBI) has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India. The other payments banks that have started operations include Airtel Payments Bank Ltd, India Post Payments Bank Ltd, Paytm Payments Bank Ltd and Fino Payments Bank Ltd. The other applicants that are yet to set up payments bank include Vodafone m-Pesa Ltd, Reliance Industries Ltd and National Securities Depository Ltd.