Airtel Payments Bank plans to start selling third party financial products like insurance

Airtel Payments Bank (APB) is planning to sell third party financial products to boost its revenue from other income category, an official said. “As per RBI guidelines, we are not allowed to carry out lending activity. But we are allowed to sell third party financial products like other banks do”, MD and CEO of APB Shahshi Arora said.

Starting operations few months ago, the bank had already opened 2.5 lakh banking points across the nation with a total customer base of two million spread across geographies. “We plan to sell insurance and MF products through our network in near future. After that, we will also offer loan products of other entities like NBFCs as we are not allowed to do lending directly”, he told reporters here today.

Payments banks were now required to park 75 percent of their total deposits in SLR securities and the balance 25 percent in other instruments as prescribed by the RBI.
He said that while charges were levied on cash withdrawals, other transactions were free of levies. This comes after the public launch of Airtel Payment’s Bank in the presence of Arun Jaitley, the Union Minister of Finance and Corporate Affairs, Sunil Bharti Mittal, Uday Kotak and other industry leaders last month.

With inputs from PTI

The post Airtel Payments Bank plans to start selling third party financial products like insurance appeared first on Tech2.

from http://tech.firstpost.com/news-analysis/airtel-payments-bank-plans-to-start-selling-third-party-financial-products-like-insurance-363968.html