Kotak Mahindra Bank has agreed, subject to regulatory approvals, to invest 19.90% in Airtel M Commerce Services (AMSL), a subsidiary of Bharti Airtel, on AMSL obtaining the payment bank licence from Reserve Bank of India.
Dipak Gupta, joint managing director, Kotak Mahindra Bank said, "Payment banks have the potential to leapfrog India's financial inclusion agenda. Basic but critical services such as small savings accounts, remittances etc will bring a large number of low income households and small business under the formal banking network."
On the investment in AMSL, Gupta added, "Bharti Airtel has the technology and physical infrastructure, a well-entrenched distribution network in rural and remote areas of the country and has the largest telecom base, coupled with our banking expertise, this clearly is a win-win for both."