Aditya Birla Idea Payments Bank Limited commenced operations as a payments bank effective Thursday, February 22, 2018, said a press release from the Reserve Bank of India (RBI).

Aditya Birla Nuvo Limited was one of the 11 successful applicants to receive RBI’s in-principle approval for setting up a payments bank on August 19, 2015.

Payments banks conceptualised by the RBI, provide a limited range of products, such as, acceptance of demand deposits and remittances of funds. Payments banks have widespread network of access points and use their own branches, business correspondents or networks provided by others. Further, the cost structure is lower as they use technology.