In less than 18 months after its commencement, Aditya Birla Payments Bank announced that it will shut down operations. We take a look at what cusomters should do now.
In less than 18 months after its commencement, Aditya Birla Payments Bank announced that it will shut down operations. Started as a joint venture by Aditya Birla Nuvo Ltd and Idea Cellular, the firm announced that it will discontinue operation due to unanticipated developments in the business landscape that have made the economic model unviable. In a message sent to its customers, Aditya Birla Payments Bank said that the bank has made full and complete arrangements for return of deposits. Notably, Aditya Birla Payments Bank will continue to work with limited operations as guided by RBI to enable customers to withdraw deposits. The board approved winding down of operations for the payment bank in its meeting on July 19 after being in discussion for a few months.
Informing the customers about the infortunate development, Aditya Birla Payments Bank said that any balance in the account can be transferred through either online or mobile banking or nearest banking point. “We will be restricting any further credits (add money) from 26th July 2019,” Aditya Birla Payments Bank said in a message to cusomters, adding that for assistance the depositors can reach out to 18002092265. The cusomters can also write to firstname.lastname@example.org. The total customer deposit with Aditya Birla payments Bank stands at Rs 20 crore, CNBC TV18 reported sources as saying. Further, the firm had about 200 employees, and most of them will be inducted in other Group businesses. The KYC norm changes made customer acquisition expensive and business unviable, reported the channel. Few of the employees are being given a severence package.
Launched on February 22, 2018, Aditya Birla Payments Bank was the fourth payments bank to begin operations since issuance of licenses to 11 firms by the Reserve Bank of India in August 2015. Payments Banks come undrer a special category of banks, as they can accept deposits of up to 1 lakh but cannot give loans or credit cards.