UPI and payment banks aren't comparable: SBI's Rajnish Kumar

In July this year, Reliance Industries and State Bank of India inked a deal under which the promoter will own 70 percent, while the banking partner will own a 30 percent stake.

SBI will meet credit requirements of payment bank customers.

Speaking to CNBC-TV18 Rajnish Kumar, MD, SBI said that through this arrangement it is expecting a last mile connectivity. “Their (Rel Jio) distribution network is huge,” he said, adding that there are certain limitations of a payment bank.

He also spoke about United Payment Interface, a mobile wallet announced by the government. He said that it won’t be a threat to payment bank. In fact, both are different, he said. “UPI is just a wallet and there is no comparison between UPI and payment bank.”(Disclosure: RIL, which owns Reliance Jio, also owns Network18 and moneycontrol.com).