Advertisment

Airtel Payments Bank to cross-sell insurance, MF products

author-image
CIOL Writers
New Update
CIOL Airtel Payments Bank to cross-sell insurance, MF products

Airtel Payments Bank is planning to cross-sell financial products like insurance and third party loans through its banking points over the next one year to boost its revenue from other income categories.

Advertisment

Because payments banks can not lend; it is expected that cross-selling banking products will be a revenue stream for these operators. These banks are allowed to take deposits – savings accounts.

“As per RBI guidelines, we are not allowed to carry out lending activity. But we are allowed to sell third party financial products like other banks do,” MD and CEO of APB Shahshi Arora told PTI.

Airtel Payments Bank started operations in November post demonetization and has already opened 2.5 lakh banking points across the nation with a total customer base of two million spread across geographies.

“We plan to sell insurance and MF products through our network in near future. After that, we will also offer loan products of other entities like NBFCs as we are not allowed to do lending directly,” Arora added.

Airtel Payments Bank current offerings include deposit and withdrawal of money, transfer of funds, and payment of utility bills, among others. As per norms, 75 percent of customer deposits will have to be parked in government SLR securities.

airtel