SBI, Bank of Baroda Secures RBI Approval to Form Section 8 Firms for Digital Payments Intelligence Platform

The Reserve Bank of India has cleared State Bank of India (SBI) and Bank of Baroda (BoB) to form Section 8 companies for a digital payments intelligence platform.  

The proposed entity, the Indian Digital Payment Intelligence Corporation (IDPIC), will function as a not-for-profit company under the Companies Act, 2013. Both banks reported the approval in separate regulatory filings. 

Exemption on Shareholding  

The approval is linked to an exemption granted by the Department of Financial Services. It allows each bank to hold more than 30% of the paid-up share capital in IDPIC until October 16, 2026.  

Under Section 19(2) of the Banking Regulation Act, banks normally cannot exceed this limit. SBI and BoB noted that the exemption is necessary for the company’s formation. 

Section 8 Company 

Section 8 companies are created for activities that do not pursue commercial profit. They may support research, education, social welfare, environmental work and similar objectives.  

Any surplus must be used for the organisation’s stated purpose and cannot be distributed as dividends. IDPIC will operate within this framework while focusing on payments-related data and oversight. 

Read More: Tata Chemicals Share Price in Focus; Announces Issuance of NCDs Worth ₹1,500 Crore! 

Market Performance  

As of December 11, 2025, 11:41 am, State Bank of India (SBI) share price traded at ₹962 a 0.23% increase from the previous closing price.  

While Bank of Baroda (BOB) share price was at ₹284.55, a 0.54% down from the previous closing price. 

Conclusion 

The RBI approvals allow both banks to proceed with the establishment of a shared, non-profit platform for supporting digital payments intelligence within the financial system. 

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