Kotak Mahindra to Acquire 19.9% in Airtel Money

airtel-moneyKotak Mahindra Bank may acquire close to 20% in Bharti Airtel’s mobile banking division that offers financial services under Airtel Money. Airtel’s mobile banking division which is called Airtel M-Commerce Services Ltd is also in the process of applying for payments banking license with the RBI.

Uday Kotak controlled Kotak Mahindra Bank will be partnering with Airtel’s subsidiary AMSL (Airtel M-Commerce Services Ltd) in the banking process, if the Sunil Mittal’s firm gets the license.

Airtel Money, a mobile banking service from Airtel helps its user to make payments as well as money transfer.

In the process, Airtel today said, Kotak Mahindra will buy 19.9% stake in AMSL.

“We welcome the Reserve Bank of India’s (RBI) initiative on Payments Bank. The RBI’s vision for differentiated banks represents a significant step in furthering India’s financial inclusion agenda. The RBI guidelines provide an exciting and challenging opportunity for an entity like us to contribute in a meaningful manner to drive financial inclusion,” Airtel CEO Gopal Vittal said in a statement.

As per the company, Airtel Money which was launched in 2011 caters to millions of users who use their mobile phones as a means to financial transaction.

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