Aditya Birla Idea Payments Bank files for liquidation: What should customers do now

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Published: November 19, 2019 5:22:19 PM

The Aditya Birla Payments Bank is informing the investors that the funds lying in the bank account can be transferred by them.

Aditya Birla Idea Payments Bank, Payments Bank, Aditya Birla Payments Bank, Aditya Birla Payments Bank nearest banking point, Paytm and India PostThe decision for the winding up of the operations was taken by the company’s board on July 19, 2019.

Aditya Birla Idea Payments Bank has closed down its Payment Bank operations thereby discontinuing their banking services. The customers, however, may not have to run after their money as the company has assured the investors that the bank has made full and complete arrangements for the return of their deposits. On November 18, RBI issued a notification stating that “On a voluntarily winding up application by Aditya Birla Idea Payments Bank Limited, the Hon’ble Bombay High Court has passed an order on September 18, 2019 and has appointed Shri Vijaykumar V. Iyer, Senior Director of Deloitte Touche Tohmatsu India LLP as the Liquidator of Aditya Birla Idea Payments Bank Limited.”

The Aditya Birla Payments Bank is informing the investors that the funds lying in the bank account can be transferred through online/mobile banking/nearest banking point. To find the nearest banking point of the bank, one may visit the link – (https://www.adityabirla.bank/find-a-banking-point )

The bank had received the license for the payment bank business on April 3, 2017, and had commenced operations on February 22, 2018. The decision for the winding up of the operations was taken by the company’s board on July 19, 2019. The provision to add money into the account was already restricted from July 26, 2019. Aditya Birla Idea Payments Bank Limited was incorporated with 51:49 equity stake held by Aditya Birla Nuvo Limited (now Grasim Industries Limited) and Idea Cellular Limited, respectively.

In order to further bring-in financial inclusions, RBI had started offering banking licenses for institutions to works as payment banks. They are allowed to take deposits up to Rs 1 lakh from each person but are not allowed to lend money. Paytm and India Post also have their payment banks and are currently offering banking services. The opening of digital savings account is one of the unique features of payment banks wherein a basic purpose account can be opened without visiting the bank branch.

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