Concerns on Financials of Payment banks

Concerns on Financials of Payment banks

The fine print reading of the payment bank guidelines has been done and  investors have raised question on the viability and profitability of payment banks. How will payment banks make moneyThe payments bank guidelines require the applicants to deposit three fourth of the investment with RBI to maintain the statutory liquidity ratio once they receive the licence.This leaves only 25% of their investment to build their operational and technological infrastructure. Investors believe this would leave the newly formed payment banks with wafer thin margins. "Out of the remaining 25% capital, maximum 15% needs to be deposited with scheduled commercial  .. This will result in just 2% to 4% profit margin," said Anuradha Ramachandran, director, Omidyar Network who have invested in payment solution providers in Africa and Indonesia.

List of entities who have applied for a payment bank license (source: RBI)

1. A Little World Private Limited, Belapur

2. Aditya Birla Nuvo Limited, Mumbai

3. Airtel M Commerce Services Limited, New Delhi

4. Calibre Financial Services Limited, Chennai

5. Cholamandalam Distribution Services Limited, Chennai

6. Citrus Payment Solutions Private Limited, Mumbai

7. Concept Technosoft Ventures Limited, New Delhi

8. Department of Posts, New Delhi

9. Eko India Financial Service Private Limited, New Delhi

10. FINO PayTech Limited, Navi Mumbai

11. Fx Mart Private Limited, Zirakpur, Mohali

12. GI Technology Private Limited, Chennai

13. Instant Global Money Transfer Private Limited, Hoshiarpur

14. Itz Cash Card Limited, Mumbai

15. Kalpataru Corporation, Mumbai

16. KKM Management Centre Private Limited, New Delhi

17. My Mobile Payments Limited, Mumbai

18. National Securities Depository Limited, Mumbai

19. Novopay Solutions Private Limited, Bengaluru

20. NSE Strategic Investment Corporation Limited, Mumbai

21. One MobiKwik Systems Private Limited, Gurgaon

22. Oxigen Services (India) Private Limited, New Delhi

23. Pay Point India Network Private Limited, Mumbai

24. Reliance Industries Limited, Mumbai

25. Resource Square Solutions Private Limited, Chennai

26. Shri Dilip Shantilal Shanghvi, Mumbai

27. Shri Kishore Laxminarayan Biyani, Mumbai

28. Shri M.G. George Muthoot & others, Kochi

29. Shri Nijay Kumar Gupta, Mumbai

30. Shri Rajib Saha, Gurgaon

31. Shri Renuka Mata MultiState Co-operative Urban Credit Society Ltd., Ahmednagar

32. Shri Vijay Shekhar Sharma, Noida

33. Smart Payment Solutions Pvt. Ltd., New Delhi

34. Suvidhaa Infoserve Private Limited, Mumbai

35. Tech Mahindra Limited, Mumbai

36. V. K. Fiscal Services Pvt. Ltd., New Delhi

37. Vakrangee Limited, Mumbai

38. Videocon d2h Limited, Mumbai

39. Vodafone m-pesa Limited, Mumbai

40. Weizmann Forex Limited, Mumbai

41. YouFirst Money Express Private Limited, Mumbai

Source : http://economictimes.indiatimes.com/industry/banking/finance/banking/rbis-payment-ecosystem-doesnt-add-up-say-investors/articleshow/46339971.cms

 

  Please do not print this email unless it is absolutely necessary.      ATTENTION: The information in this electronic mail message is private and confidential, and only intended for the addressee. Should you receive this message by mistake, you are hereby notified that any disclosure, reproduction, distribution or use of this message is strictly prohibited. Please inform the sender by reply transmission and delete the message without copying or opening it. Messages and attachments are scanned for all viruses known. If this message contains password-protected attachments, the files have NOT been scanned for viruses by the ING mail domain. Always scan attachments before opening them.    ING Vysya Bank Limited, ING Vysya House, #22, MG Road, Bangalore-560001 | Corporate Identity Number : L85110KA1930PLC000124 | Tel/Fax: 080-25005000 / 080-25005555 | www.ingvysyabank.com