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SBI, Airtel signs JV pact to offer mobile banking services
January 13, 2011
State Bank of India and telecom giant
Bharti Airtel entered into a joint venture (JV) to make
available banking services to the country's unbanked
They new entity will start-up with an investment of Rs 100
crore to add value to the banking and financial services
The JV will become the Business Correspondent of State Bank of
India (SBI) and offer banking products and services at
affordable cost to the citizens, the companies said in a joint
Business correspondents are persons who, besides helping rural
people to open bank accounts, would facilitate in banking
transactions. Their key role is to accept deposits and remit
In the newly formed joint-ventre company, SBI will hold 51 per
cent stake and rest will be held by Bharti Airtel, which will
be concluded by 31st March, 2011, the statement added.
"This JV will brings together the commitment of two of the
India's greatest institutions, which will enable the bank
reaching out to every Indian leveraging the distribution
network of Airtel to provide banking services," SBI Chairman
OP Bhatt said.
The JV as Business Correspondent will engage Airtel's
retailers as Customer Service Points (CSP) all over India in a
The newly formed entity, will harness the power of State
Bank's strengths and airtel's mobile telephony to add value to
the banking and financial services sector.
With this JV, existing, new airtel and other mobile customer
will be able to visit these outlets and open new SBI bank
accounts and avail of other banking products and services
available at the CSPs.
Additionally, existing SBI customers will also get serviced at
This partnership between India's leading mobile and banking
service providers represents a first-of-its kind
collaboration, aimed at making the concept of inclusive
banking a reality for customers in India.
"This historic collaboration between SBI and Airtel will
create a scalable operations that will address the banking
requirements of millions of Indians through the mobile
platform," Bharti Airtel Chairman, MD Sunil Bharti Mittal
As per the Reserve Bank's guideline, banks are allowed to
engage retired employees, ex-servicemen and retired government
employees and other entities, as prescribed by the central
bank, as business correspondents.