Third party financial products to be sold on Airtel Payments Bank
Posted on: 24/Feb/2017 2:27:43 PM
It is likely that Airtel Payments Bank will be selling third party financial products soon. This is intended to increase revenue from the other income category, said an official. Lending activities are not allowed as per RBI guidelines. The MD and CEO of APB Shahshi Arora said in her statement that APB is allowed to sell other third party financial products.
About 2.5 lakh banking points are already opened while starting operations about two months ago. Spread across geographies, it has more than 2 million customer base.
Insurance and MF products are likely to be sold through the network in future. Following this, loan products by others like NBFCs will also be offered. This is because direct lending is not allowed, he added.
Nearly 75 percent of total deposits should be parked with SLR securities and the remaining need to be in other instruments, according to RBI recommendations. When cash withdrawals are charged, the other kinds of transactions were for free. This comes following public launch of Airtel Payment’s Bank when Arun Jaitley, Union Minister of Finance and Corporate Affairs, Sunil Bharti Mittal, Uday Kotak and other leaders in industry.
