Three entities – Telenor Financial Services, IDFC Bank and Dilip Shanghvi – have given up their plans to set up a payments bank. These entities had won in-principle approval from the Reserve Bank of India to set up the banks. According to news reports, the decision to give up the plan was taken as the promoters collectively felt that they lacked adequate physical presence in terms of offices or branches. In September 2015, Dilip Shanghvi as lead applicant along with Telenor Financial Services and IDFC Bank, was granted in-principle approval by the regulator to form a payments bank. According to Tine Wollebekk, senior vice president and head of Telenor Financial Services, Telenor had worked hard together with its partners to form a company which can meet the demand for basic banking services across India. Dilip Shanghvi on behalf of Dilip Shanghvi Family & Associates, in turn, said that Telenor Financial Services and IDFC Bank had rich experience in offering financial services and the intention of the JV was to combine his expertise to launch a robust payment bank service in India. However, following the mutual decision to withdraw these plans, the payment bank license will not be pursued, he added.
