Airtel M Commerce Service Limited received Banking licence from RBI for Banking. Airtel partnered with Kotak Mahindra Bank wherein Kotak Mahindra paid 98.4 crore and took 19.9% stake in Payment banking unit. Airtel Payment Bank can accept, remit, allow transaction to end user whereas it will not be allowed to lend money. User can do 1 lakh INR of transaction.
Airtel Payment Bank used it's network to launch the service and in no time acquired tens of thousand userbase. The most attractive part is the offered interest rate of 7.25% on saving account coupled with free talk time and accidental insurance. It gives large section of Indian Citizen an option to get insured and reduce monthly phone bill. On the technological side, the service is based on OTP based authentication and Authorisation of user and henceforth offer greater security compared to available wallet.
In my opinion given the base Airtel and Kotak is having, it won't be long before Airtel will be sitting on multi million User base. The new entity will have multi billion $ Valuation given the GoI cashless transaction and end user requirements to get all in one solution instead of managing multiple solution.
It's the right time to invest in Airtel with long term view so that one can reap in the benefit of Airtel Payment Bank value assertion.
Disclaimer please consult your financial advisor before investing.
Hi! Thanks for the great information you havr provided! You have touched on crucuial points!
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