New Delhi: Reliance Industries and the State Bank of the Grand Bank of India have signed the shareholder contract for the creation of the banking joint venture. Energy and telecommunications conglomerate Reliance Industries and India`s largest lender, SBI, have signed shareholder agreements for the creation of small deposit guarantee institutions, the payment bank. Mumbai: Reliance Industries Ltd (RIL) and State Bank of India (SBI), the country`s largest lender, have signed the subscription and shareholder contracts of their payment bank. The court ordered the companies to record their air-sharing agreement. It also ordered the government to provide details of companies that have used the air waves of bankrupt companies. Hearings on the case will continue on Monday. The MoU was signed between Mrutyunjay Mahapatra, Deputy Managing Director (Strategy) – Chief Digital Officer, State Bank of India, and Alok Agarwal, CFO, Reliance Industries Limited. In its comprehensive context, the partnership aims to satisfy daily payments, bank, purchasing and lifestyle travel, as well as a larger number of customers of the 3 companies, namely SBI, Jio and Jio Payments Bank. The idea is to deliver all this wherever the customer wants, at ease, on the mobile phone and at BC outlets throughout India. Tuljapurkar added: “In India, some large companies seem to be above the law.
They do not want to respect certain fundamental principles of good corporate governance, such as the prevention of conflicts of interest. There are representatives of the Ministry of Finance and the banking regulator, the RBI, on the SBI board of directors, and if you consider that these people apparently did not find anything wrong or unusual in the relationship between the bank and the Reliance group, it speaks volumes about their thinking. As a provider of banking services that facilitate small payments and retail transactions, payment banks can offer their customers zero-rate wallets and para-banking services such as automated ATMs. However, banks cannot make such payments to their customers or allow them to keep bank accounts for individuals. The RIL-SBI combination was one of 11 companies licensed by the Reserve Bank of India (RBI) to set up a payment bank last August. Two of them — Cholamandalam Investment and Finance Co and the grouping of Sun Pharma developer Dilip Shangvi, IDFC Bank and telecommunications operator Telenor have decided to put on hold plans to create a payment bank. Jio Payments Bank`s payment services will be provided via the SBI You Only Need One or YONO platform, a digital banking application launched by SBI in 2017.