Aditya Birla Idea Payments Bank has ceased to be a banking company under the Banking Regulation Act, 1949, the Reserve Bank has said. "We advise that the 'Aditya Birla Idea Payments Bank Limited' has ceased to be a banking company within the meaning of the Banking Regulation Act, 1949 with effect from July 28, 2020," the central bank said in a notification.
In July last year, Aditya Birla Idea Payments Bank had announced it would wind up its banking business on account of "unanticipated developments" that made its economic model "unviable". In November 2019, the Reserve Bank said Aditya Birla Idea Payments Bank was headed for liquidation.
The payments bank was promoted by Grasim Industries Limited and Vodafone Idea Limited with 51 and 49 per cent shareholdings, respectively. In a regulatory filing in July last year, Vodafone Idea had said the decision to shut operations by the Aditya Birla Idea Payments Bank was taken due to "unanticipated developments in the business landscape, which have made the economic model unviable".
Aditya Birla Idea Payments Bank had received the banking licence to operate as a payments bank in April 2017. It had also got authorisation to work on Prepaid Payments Instrument business.
In February 2018, Aditya Birla Idea Payments Bank became the fourth entity to begin payments banking operations since the issuance of licences to 11 firms by the RBI in August 2015. In another notification, the RBI has said Westpac Banking Corporation has also ceased to be a banking company.