SBI, Bank of Baroda get RBI nod to set up Section 8 companies for digital payments intelligence platform

State Bank of India (SBI) and Bank of Baroda (BoB) have received the go-ahead from the Reserve Bank of India to establish Section 8 companies under the Companies Act, 2013, for a digital payments intelligence

platform. Section 8 companies are designed for non-profit objectives.

In separate regulatory filings, both banks said the approval is subject to an exemption granted by the Department of Financial Services, Ministry of Finance, allowing them to hold more than 30% of the paid-up share capital in the proposed Section 8 entity, Indian Digital Payment Intelligence Corporation (IDPIC), until October 16, 2026.

SBI stated that it has received RBI's approval to establish the Section 8 company for the platform and noted the exemption under Section 19(2) of the Banking Regulation Act, 1949.

Bank of Baroda, in its disclosure, said it has similarly received RBI approval to establish a Section 8 company for the digital payments intelligence platform, subject to the same exemption from the Ministry of Finance.

The shares of State Bank of India ended 0.14% in the red on Wednesday, December 10. The stock has gained close to 21% in the year so far. The shares of Bank of Baroda ended 1.6% lower on Wednesday. The stock has  jumped 18% in the year so far.

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