Fino Payments Bank is contemplating merging with its holding company, subject to approval from the Reserve Bank of India (RBI), according to a Monday (Aug. 30) CNBC report. The possible reverse merger comes on the heels of RBI’s authorization for the reverse merger of two small finance banks, Equitas and Ujjivan.
The undertaking is expected to start once the 4-year-old company finishes its planned initial public offering (IPO) by December, according to the report.
According to its website, Fino Payments Bank is looking to make an IPO of its equity shares and has submitted a draft red herring prospectus with the Securities and Exchange Board of India. The bank operates 54 bank branches in India, serving 2.6 million bank accounts on Fino platforms. Fino Payments Bank offers a variety of financial services, including checking and savings accounts, mobile banking and payments with the BPay app.
Monday’s announcement follows a recent PYMNTS report that RBI, India’s central bank, had postponed the launch of a new digital payment platform. The network would have enabled new entities to create digital payment platforms in order to broaden the base of online transactions – a move said to help “end the National Payments Council of India’s dominance in online transactions.” Amazon, Google, Facebook and other corporations had applied for the new umbrella entities’ licenses.
Related news: RBI Delays Plans to Launch New Payment Network
In July, RBI banned Mastercard customers from its network. The ban could be related to the bank’s decision to review the new umbrella entities’ submissions and postpone payment transactions managed by the private sector. RBI had previously banned American Express and Diners Club from onboarding new customers onto their card networks due to noncompliance with India’s data localization norms.
See more: India’s RBL Bank Will Issue Visa Credit Cards After Mastercard Ban
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