'The richest man' Dilip Sanghvi drops the idea of payment bank; withdraws application

| Friday, May 20, 2016 - 20:46
First Published |
Dilip Sanghvi drops the idea of payments bank

Dilip Sanghvi drops the idea of payments bank

New Delhi: The man, who in 2015 dethroned Mukesh Ambani as the richest Indian, has dropped its plans for floating a payments bank.  Dilip Shanghvi, IDFC Bank and Telenor Financial Services on Friday said they are not interested in establishing the bank; without citing any reason.
This comes two months after Cholamandalam dropped its plans to establish the niche bank. “During the past eight months, representatives of these three partners have worked together to establish relevant frameworks and a governance structure for the proposed joint venture (JV),” a joint statement said.
The Reserve Bank of India (RBI) had given licences to 11 entities on 19 August to float these niche banks that cannot lend, but accept deposits of up to Rs 1 lakh. 
This indeed, comes as a blow to the government's objective to further financial inclusion as with Shanghvi-IDFC-Telenor deciding to give back their licence, there will be only nine entities left.
Experts had reportedly been hailing the award of the eleven licenses, as the next revolution in the banking sphere of India. India currently has 600 million debit card users and 22 million credit card users, according to the reported numbers.

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