NSDL hopes to launch payments bank by May

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MUMBAI: NSDL today said it has applied to the Reserve Bank for the final licence for its payments bank and is aiming to launch the entity by May.

“We have applied for the final licence and are looking at launching the bank by May,” managing director and chief executive GV Nageswara Rao told reporters here.

He said NSDL has replied to all the queries posed by the Reserve Bank since being granted the in-principal nod in 2015, after which the application for the final licence was made.

It can be noted at least three in-principal licensees — Tech MahindraBSE -0.36 %, Dilip Shanghvi and CholamandalamBSE 3.16 % group — have opted out.

NSDL, the biggest security depository, has not spoken much about its plans till now.

On January 20, Rao had said they would be launching the banking venture in three months. The new payments bank venture will be a separate entity housed within the 20-year- old securities depository and will be led by an independent team starting with a chief executive, he had said.

The leadership team had been identified and was to be announced soon, Rao had said then. However, he, declined to answer further questions today.

Meanwhile, NSDL today entered into a tie-up with private sector lender HDFC BankBSE 0.54 % to offer an online loan- against-shares facility for the latter’s demat holders.