After Cholamandalam Investment and Finance Company and Dilip Shanghvi led joint venture, now Mahindra group’s IT arm, Tech Mahindra has dropped its payments bank plan.
“The Board of Directors of the Company at its meeting held on May 24, 2016, have decided that the Company will not pursue this opportunity,” the IT major said.
In August last year, RBI had awarded in-principle licences to 11 entities including Reliance Industries, and Aditya Birla Group, to start payments bank. These players were given 18 months to start operations, failing which the licences will stand cancelled.
On Monday, SS Mundra, deputy governor, Reserve Bank of India had expressed his displeasure with entities surrendering their payments bank licence and said it would explore the possibility of a processing fee for the applicants.
