State Bank of India, the country's largest lender, is to form a merchant acquiring joint venture with US-based Elavon and Visa.
The Indian bank issued an RFP for venture partners last year and has gained approval from the central bank to establish a merchant acquiring subsidiary.
According to a statement filed with the Bombay Stock Exchange, the joint venture aims to roll out 600,000 point of sale terminals to merchant locations over the next five years.
Financial terms of the deal have not been disclosed.