State Bank of India (SBI) has received approval from the Reserve Bank of India (RBI) to establish a Section 8 company under the Companies Act, 2013. This new entity will focus on Digital Payments Intelligence Platform. The approval is subject to certain exemptions and conditions granted by the Department of Financial Services, Government of India. The proposed entity will be known as Indian Digital Payment Intelligence Corporation.
Section 8 Company Approval
State Bank of India has secured approval from the Reserve Bank of India (RBI) to set up a Section 8 company, focusing on the establishment of a Digital Payments Intelligence Platform. This move is aligned with the bank’s strategic initiatives in the digital payments ecosystem.
Conditions and Implications
The RBI’s approval is subject to exemptions granted by the Department of Financial Services, Government of India. Specifically, this relates to exemptions that enable SBI to hold shares exceeding 30% of the paid-up share capital. It is related to an exemption from Section 19(2) of the Banking Regulation Act, 1949.
Entity Details and Timeline
The proposed Section 8 company will be named Indian Digital Payment Intelligence Corporation. The validity of the approval extends until October 16, 2026. SBI is in the process of establishing the corporation.
Source: BSE
