IDFC bank branches to be mix of metros, backward areas
Mumbai: IDFC, which is targeting full-fledged debut as bank by October, today said it is working on a “binary strategy” that will entail opening branches in metros as well as backward districts of the country.
“IDFC has chosen a binary strategy to operate in India, with one set of branches out of metropolitan cities and the others in bottom-of-the-pyramid districts,” Company COO Avtar Monga said in a statement.
The infra lender, which was granted an in-principle nod to start banking operations last year, is aiming to start with around 25 branches.
These branches will be spread across different sections of towns and some will be dedicated for niche activity like corporate lending, the management had earlier said.
Under RBI’s existing guidelines, a bank has to open 25 per cent of its branches in unbanked centres in semi-urban and rural areas.
“It is important that we establish a payments technology infrastructure that will enable us to provide a uniform banking experience across both our urban and rural customer segments,” Monga said, announcing a tie-up with Chennai-based company for payments and transaction processing.
Under the partnership, FSS will provide payments technology infrastructure for the bank which will include payments processing, card management, reconciliation to payment gateway for e-commerce, and Aadhaar enabled payments for financial inclusion, the FSS statement said.
It will also install and manage IDFC’s ATM network.
“I am confident that our integrated ‘Bank in a Box’ offering will power IDFC to operate seamlessly,” FSS’ MD Nagaraj Mylandla said.
FSS has over two decades of experience and helped in the growth of both retail as well as wholesale payments by serving banks, financial institutions, merchants and governments.
It clientele includes over 100 banks, some of the world’s largest processors and retailers, the statement said.