The Reserve Bank of India has approved State Bank of India (SBI) and Bank of Baroda (BoB) to set up Section 8 companies for the proposed digital payments intelligence platform. The new entity — Indian Digital Payment Intelligence Corporation (IDPIC) — will operate as a not-for-profit company under the Companies Act, 2013. Both banks disclosed the approval through regulatory filings.
Exemption on Shareholding
The approval is tied to an exemption granted by the Department of Financial Services, allowing each bank to hold more than 30% of IDPIC’s paid-up share capital until October 16, 2026.
Under Section 19(2) of the Banking Regulation Act, banks are generally restricted from holding equity above this limit. SBI and BoB stated that this exemption is essential for forming the new entity.
Section 8 Company Framework
Section 8 companies are established for non-profit activities such as research, education, social welfare or environmental initiatives. They cannot distribute dividends, and any surplus must be used for the organisation’s stated objectives.
IDPIC will function under this framework and will focus on payments-related intelligence, data analysis and oversight.
Summary:
RBI has permitted SBI and Bank of Baroda to set up Section 8 not-for-profit entities for the Indian Digital Payment Intelligence Corporation (IDPIC). The banks have also received an exemption to hold over 30% shareholding until October 2026. IDPIC will operate as a non-profit organisation focused on digital payments intelligence and oversight.
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