The Hindustan Express
Buisness

The RBI has rejected Zerodha’s bid for a payments bank license: This Is Why

Share

<p>The Reserve Bank of India (RBI) is aggressively pursuing a payments bank license for Zerodha, a brokerage powerhouse with headquarters in Bengaluru. Their goal is to build a bank that will oversee consumer money and expedite payment processes, improving trade effectiveness and lowering dependency on outside financial institutions.</p>
<p><img decoding=”async” class=”alignnone wp-image-302219″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-rbi-has-rejected-zerodhas-bid-for-a-payments-bank-license-this-is-why-depositp-750×422.jpg” alt=”theindiaprint.com the rbi has rejected zerodhas bid for a payments bank license this is why depositp” width=”1168″ height=”657″ title=”The RBI has rejected Zerodha's bid for a payments bank license: This Is Why 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-rbi-has-rejected-zerodhas-bid-for-a-payments-bank-license-this-is-why-depositp-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-rbi-has-rejected-zerodhas-bid-for-a-payments-bank-license-this-is-why-depositp-1024×576.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-rbi-has-rejected-zerodhas-bid-for-a-payments-bank-license-this-is-why-depositp-768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-rbi-has-rejected-zerodhas-bid-for-a-payments-bank-license-this-is-why-depositp-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-rbi-has-rejected-zerodhas-bid-for-a-payments-bank-license-this-is-why-depositp-150×84.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-the-rbi-has-rejected-zerodhas-bid-for-a-payments-bank-license-this-is-why-depositp.jpg 1200w” sizes=”(max-width: 1168px) 100vw, 1168px” /></p>
<p>What took place? Zerodha has proposed to the RBI to establish a bank that would solely serve the payment requirements of its more than 6 million active clients, according to a report by The Morning Context. However, because of earlier issues with the payments bank concept, the RBI is still cautious about issuing fresh licenses.</p>
<p>The payments bank experiment, which was started in 2017, hasn’t gone as planned; several of the companies are dealing with poor profits, regulatory challenges, and operational difficulties. Zerodha aims to provide a use-case that aligns with the RBI’s goal; yet, the central bank’s hesitation is indicative of its cautious approach towards the payments bank industry.</p>
<p>In the midst of heightened competition in the brokerage industry and recent technical problems with its trading platform, Zerodha is pushing for a banking license.</p>
<p>Why is it important? The action is consistent with their plan to enhance trading platform performance and client experience, as well as to acquire a competitive advantage over rivals such as Groww.</p>
<p>By lowering reliance on outside banking and payment systems, Zerodha’s position in the market might be considerably improved by the establishment of a payment bank. Zerodha’s banking aspirations, however, are put in a difficult position by the RBI’s present position as it negotiates regulatory reluctance and the intricate financial sector in India.</p>


Share

Related posts

After the company declares a dividend, Hindustan Zinc drops 5%; learn the record date and other information

cradmin

On June 16, you may see the most recent jewelry prices in your city as gold prices rise beyond Rs 60,000

cradmin

Mercedes-Benz Introduces the EQE SUV In India For Rs. 1.39 Crore; View EQE SUV Details

cradmin