Kotak Mahindra Bank to Invest in Airtel M Commerce

Kotak Mahindra Bank Limited has agreed, subject to regulatory approvals, to invest 19.90% in Airtel M Commerce Services Limited (AMSL), a subsidiary of Bharti Airtel Limited, on AMSL obtaining the Payment Bank licence from Reserve Bank of India.

Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank Limited 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 businesses 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 customer base, coupled with our banking expertise, this clearly is a win-win for both.”

AMSL is in the process of applying for Payment Bank License to the Reserve Bank of India (RBI).