Ravalika Medipally February 4, 2015

 Ambanis Group, Reliance Industries is trying their luck in banking Sector, it joined in a list of companies that are going to apply to set up a banking network across India. Mukesh Ambani, in a press release said that Reliance will join with India’s largest bank, State Bank of India if they get a license to run a network of so called payments Bank.

The richest person in India and one of the most popular industries worldwide have the entire prospects to be successful. Reliance in Banking Sector is still going to receive a huge competition from others who have in same track.

According to recent survey by Bill & Melin Gates foundation that only 47% of Indians have Bank accounts as of 2013-2014 of which only 25% are active. In order to increase this percentage, Reserve Bank of India has the below decision that will be helpful for rural development of Banking sector.

The Reserve Bank of India gave permission for 2 full service banks last year in the first licensing process in a decade. This is the first time ever, Reserve Bank of India called applicants for 2 different categories. All Mobile Phone carriers, retailers, prepaid payment card issuers are top among those allowed to apply for payment bank permits.

The leading cellular carrier Bharti Airtel Ltd confirmed the relationship with the Kotak Mahindra bank. Other carriers, Vodafone also applied for a license of payments bank.

According to the expert reports, Idea network is also going to apply for partnership with its top stakeholder. Coming to Future Group, a leading retailer was also in race for a payments bank permit. Though the Reserve Bank of India didn’t release any of the list of applicants or a timeline for replies.

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