Aditya Birla Idea Bank ceases to be banking company

Aditya Birla Idea Payments Bank has cea sed to be a bankin g company within the meaning of the Banking Regulation Act, the Reser ve Bank said on Thursday.

In November last year, the RBI had said that Aditya Birla Idea Payments Bank was headed for liquidation after the company's appli cation for voluntar y winding up.

"We advise that the ' Aditya Birla Idea Payments Bank Li mited' has ceased to be a banking company within the meaning of t he Banking Regulation Act, 1949 with effect from July 28, 2020....," one o f the notifications said.

The decision to shut operations by the Aditya Birla Idea Payments Bank was taken due to unanticipated developments in t he business landscape which have made the economic model unviable, a r egulator y filing by the Vodafone Idea Limited h ad said in July last year.

The company had r eceived the banking licence from the RB I in April 2017 for car rying on the business of a payment s bank and had also received an authorisation t o carry on the business of Prepaid Payments Instrument business. It had commenced busi ness from Februar y 22, 2 018.

MUMBAI: Debt-ridden I L&FS has proposed to initia te bankruptcy pr oceedings for two of its offshore firms - ITNL Infrastructure Developers LLC (IIDL) and ITNL Inter national DMCC (IIDMCC) - in the courts of the UAE.

IL&FS had r equest t he Mumbaibench of the National Company Law Tribunal (NCLT) to take on record its proposal t o initia te the bankr uptcy proceedings bef ore the D ubai Cour ts under UAE Federal Decree.

The tribunal consented with the decision of the newly constituted board of the I L&FS and observ ed t hat the initiation of bankruptcy proceedings was the best option for the two firms.

"After hearing both the sides and on perusal of records, this bench is of the