New Delhi: Aditya Birla Idea Payments Bank has ceased to be a banking company within the meaning of the Banking Regulation Act, the Reserve Bank said Thursday.
In November last year, the RBI had said that Aditya Birla Idea Payments Bank was headed for liquidation after the company’s application for voluntary winding up.
“We advise that the ‘Aditya Birla Idea Payments Bank Limited’ has ceased to be a banking company within the meaning of the Banking Regulation Act, 1949 with effect from July 28, 2020….,” one of the notifications said.
The decision to shut operations by the Aditya Birla Idea Payments Bank was taken due to unanticipated developments in the business landscape which have made the economic model unviable, a regulatory filing by the Vodafone Idea Limited had said in July last year.
Aditya Birla Idea Payments Bank had received the banking licence from the RBI in April 2017 for carrying on the business of a payments bank and had also received an authorisation to carry on the business of Prepaid Payments Instrument business. It had commenced business from February 22, 2018.
Aditya Birla Idea Payments Bank was promoted by Grasim Industries Limited and Vodafone Idea Limited with 51 and 49 per cent shareholdings respectively.
In another notification, the RBI said Westpac Banking Corporation has also ceased to be a banking company.
(PTI)