Telecom towers, Photo by Wahengbam Rorrkychand

Telecom Operators Urge RBI to Allow Fully-owned Subsidiaries to Function as Payments Banks

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Telecom operators have urged the Reserve Bank of India (RBI) to allow their fully-owned subsidiaries to function as payments banks, arguing that this will allow them to operate on a low-cost model and meet the government’s financial inclusion targets.

The GSM industry body, Cellular Operators Association of India (COAI), has written to the central bank, saying that some of the clauses on promoter equity, foreign equity, rural branches and ring-fencing in the draft guidelines will make it complex and expensive for telecom operators to function as payments banks. It has also asked RBI to do away with the restriction on the maximum deposits per customer and align it with those applicable to any scheduled bank. By Anandita Singh Mankotia/ ET Telecom

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Wahengbam Rorrkychand

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