Aditya Birla Idea Payments Bank, the Reserve Bank said on Thursday (3rd September 2020), has ceased to be a banking company within the meaning of the Banking Regulation Act. The RBI had said in November last year that Aditya Birla Idea Payments Bank was headed for liquidation after voluntary winding up the company’s application.
The Honourable Bombay High Court has passed an order for the winding-up of the Bank and has appointed Vijayakumar Iyer as the liquidator for the same with all the powers prescribed by the Banking Regulations Act 1949 read with the relevant provisions of the Companies Act 2013.
The company chose a voluntary winding up because of the uncertain and unforeseen events that took place in the company. According to one of the RBI notifications, Aditya Birla Idea Payments Bank Limited ceased to be a banking company within the meaning of the 1949 Banking Regulation Act effective July 28, 2020. The company will no longer be considered as a banking company.
The Aditya Birla Idea Payments Bank’s decision to shut down operations was made due to unforeseen developments in the business landscape that rendered the economic model unviable, a regulatory filing by Vodafone Idea Limited said in July last year.
The Aditya Birla Idea Payments Bank’s decision to shut down operations was made due to unforeseen and unanticipated developments in the business landscape that rendered the economic model unviable, a regulatory filing by Vodafone Idea Limited said in July last year.
Aditya Birla Idea Payments Bank obtained the RBI banking license for carrying on a payment bank business in April 2017 and was also approved to carry on the Prepaid Payments Instrument business. As of 22 February 2018, it had started the business.Grasim Industries Limited and Vodafone Idea Limited supported Aditya Birla Idea Payments Bank with 51 and 49 percent shareholdings, respectively.
The RBI also said in another notification published in the Gazette of India that Westpac Banking Corporation has also ceased to be a banking company within the meaning of the Banking Regulation Act 1949. RBI Issues the notification stating the cessation of these two corporations as banking companies due to unanticipated circumstances.
