Idea Cellular has set itself a June target to launch payments bank operations, and is signing up retailers who sell its telecom services to also double up as banking touch points to allow customers to carry out transactions.
The company recently received the Reserve Bank of India's (RBI) final approval to open its payments bank. It is in the process of integrating its systems with those of the National Payments Corporation of India and the RBI. Joining the network will allow it to facilitate interbank electronic transactions. The company hopes that a significant part of its telecom subscribers will enroll for the banking services. Idea does not intend to enter the game of attractive interest rates and will offer interest rates along the same lines as the savings account interest rates. It has mind makeup of tying up with various players for hotel bookings, bus tickets; railways ticket booking, and create an entire ecosystem to get customers to transact through them.
Idea Payments Bank has started partnering with e-commerce companies to assist customers, including those who do not have Internet access or smartphones, to make purchases online and pay directly from their accounts. It expects this to become a major source of revenue.