Aditya Birla Payments Bank (ABPB) has decided to shut its banking business. ABPB eventually decides tosurrender the banking licence that it owns to the Reserve Bank of India (RBI).
Aditya Birla Payments Bank was known to be one of the 11 applicants to receive approval from RBI to launch a payments bank. ABPB was a joint venture by Aditya Birla Group and Idea Cellular which was launched on 22 February 2018. Aditya Birla Group has a portfolio which is extensive that spans from textiles, metals, cement to telecommunications.
The bank will require three months to shut down all its operations officially. A lack of funds was the major reason for the closing down of the bank, along with a non-sustainable business model. Sources suggest, the lack of a sustainable business model and sufficient fund turns out to be the major reason behind the shutting down of the bank.
ABPB has used its website as a platform to declare that it has made all the necessary arrangements for the return of customer deposits.
The bank have been operating across Chennai, Mumbai, Indore, Hyderabad and Lucknow. It used Infosys’ Finacle core banking system for its technological needs.
It is understood and now seen that out of all the 11 banks that were granted licence by RBI, only six still continue to operate. These include Airtel Payments Bank,India Post Payments Bank, Fino Payments Bank, Paytm Payments Bank.