wordpress blog stats
Connect with us

Hi, what are you looking for?

Vodafone M-Pesa allows loan EMI payments; primer for payments bank?

Vodafone’s M-Pesa wallet will now allow customers to pay monthly EMIs for loans. Currently, it has partnered with a number of non-banking finance companies (NBFCs) which includes Bajaj Finserv, Home Credit Finance, Mannapuram Gold, Muthoot Fincorp and Ess Kay Fincorp. Customers can make EMI payments through the Vodafone M-Pesa app or they can visit the closest M-Pesa business correspondent. The company claims that it has a business correspondent network of 1.3 lakh agents right now.

Note that Vodafone also has an in-principle approval from the Reserve Bank of India (RBI) to start a payments bank and the deals with the NBFCs seem to be a primer for launching its operations. Remember, payments banks are not allowed to give loans to customers from their own books, but they are allowed to offer loans from other financial institutions to customers.

In this scenario, the EMI payment facility from Vodafone will be crucial to these NBFCs in the collection of loans.

Idea Cellular merger

Earlier this month, Idea Cellular, which is in merger talks with Vodafone, got the final licence from the RBI to start a payments bank. Out of the eight entities which got the in-principle nod to start a payments bank, Vodafone is still last entity which has not received the final approval.

Advertisement. Scroll to continue reading.

However, Vodafone may have to surrender its approval if it merges with Idea Cellular, as indicated by this Economic Times report. It added that Vodafone would have to surrender the licence as it may not be able to comply with foreign ownership norms. Vodafone India is a wholly-owned subsidiary of its UK parent and payments banks need foreign shareholding to be below 50%.  The publication added that Vodafone was in talks with the Aditya Birla Group for an all-share merger, they were on track to fulfill their ambition regarding a payments bank.

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Looking at the definition of health data, it is difficult to verify whether health IDs are covered by the Bill.


The accession to the Convention brings many advantages, but it could complicate the Brazilian stance at the BRICS and UN levels.


In light of the state's emerging digital healthcare apparatus, how does Clause 12 alter the consent and purpose limitation model?


The collective implication of leaving out ‘proportionality’ from Clause 12 is to provide very wide discretionary powers to the state.


The latest draft is also problematic for companies or service providers that have nothing to with children's data.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ