RBI Grants Approval to Reliance Jio for Jio Payments Bank

Catching up on the growing fintech and payments scene, Reliance Jio has also confirmed their plans to start ‘Jio Payments Bank’ last year. And the Reserve Bank of India (RBI), on Tuesday, officially announced that Jio Payments Bank had commenced operations starting April 3, 2018. The Reserve Bank of India in their official statement said: “The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India.”

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Interestingly, Reliance Industries Limited wasn’t the only one to receive the license on Tuesday. The intense growth of the online payment sector has propelled a lot of companies to capitalize on the opportunity. As a result of that, Reliance Jio was one of the 11 applicants who were issued an in-principle approval for setting up a payments bank. Back in 2015, Reliance Jio was amongst the 11 applicants for starting the payments bank service in India.

Already, big players such as Paytm and Bharti Airtel have started payment operations under Paytm Payments Bank and Airtel Payments Bank last year. And now, Jio is entering the segment with Jio Payments Bank.

It should be noted that RBI has conceptualised the idea of Payments bank as small entities which carry on activities like providing small savings accounts and payments or remittance services, meaning that these firms don’t scale their operations to full-fledged banking but still offer widely used payments services which are mainstream in the day to day operations. Details about the Jio Payments Bank are yet to be revealed, but the company last month have sent messages to all the JioMoney users that the wallet service will be merged to Jio Payments Bank once it begins the operations.

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14 Comments on "RBI Grants Approval to Reliance Jio for Jio Payments Bank"

 

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Sudhakar
April 4, 2018 9:21 pm 9:21 PM

Stupid RBI. The RBI must impose the condition stating that jio must not open payment bank account of any user without his approval.

Girish Gowda | BengaLuru
April 5, 2018 4:00 pm 4:00 PM

I implore you to make more sense going forward. JIO is not your Airtel to do that.
Suddenly this guy turned from Aircel supporter to BSNL supporter to Airtel supporter now according to the payments he is getting. Nobody can trust chameleons.

KANAGADEEPAN N, Sivakasi (TN)
April 5, 2018 8:37 am 8:37 AM
Off Topic: Sudharkar Bro, (or other frequent International Roamers here) I need one help / suggestion from you reg International Roaming. I have a bank A/C’s OTP tied up with Jio number. So far the OTP comes instantly. But for a few days, I may go for International Roaming. I am using my main number in Airtel (Postpaid) for International Roaming and had no issues till then. Now my question is, if all I want is Incoming SMS from Jio (for OTP), what should I do. I don’t need any calls (even incoming not needed), data or SMS outgoing. Is… Read more »
Sudhakar
April 5, 2018 12:08 pm 12:08 PM

Better do not use postpaid for international roaming in any provider for your safety against illegal additions to your bill.

Sudhakar
April 5, 2018 12:07 pm 12:07 PM

Do not subscribe to any IR pack in jio. That is foolish. It will.just add main balance. Instead recharge jio with full talk value topups and keep a considerable main balance. Thats all.

Sudhakar
April 5, 2018 12:05 pm 12:05 PM

You can use jio even in 2G only handsets provided tha you are outside India. Just send one SMS from jio number every 60 days (Rs.15 per SMS). Jio does not charge monthly rent for international roaming.

In Airtel prepaid : Just dial *129# and choose any single digit Rs. voice or data pack every 60 days. Thats all. Your number will stay active. Similar procedure for vodafone and Idea.

KANAGA DEEPAN N, Sivakasi (T.N.)
April 6, 2018 11:31 pm 11:31 PM

Thanks a lot Sudhakar bro…

Actually I am going for 8 days only. Your info reg Jio IR is very helpful and that is exactly what I was looking for. I really can’t thank you enough bro for the time you have taken to explain in detail.

Thanks again…

Girish Gowda | BengaLuru
April 4, 2018 9:13 pm 9:13 PM

I don’t have any account in any payment banks but I am eagerly waiting for JIO’s payment bank to launch!

Cool_chennai
April 4, 2018 8:39 pm 8:39 PM

I dono how it will face competition in the market. I think Paytm is having grip over the current market

Sandeep Bansal, Manipal
April 4, 2018 9:11 pm 9:11 PM

By creating the same monopoly, it created in the telecom business…

Girish Gowda | BengaLuru
April 5, 2018 3:57 pm 3:57 PM

They won’t do that. Payment banking isn’t something anyone can monopolize. They will just use the banking muscle to improve customer interaction with JIO products and also to improve ease of online payments.

Cool_chennai
April 4, 2018 9:43 pm 9:43 PM

Lets wait and watch.

Banking is different from telecom ryt?

What will they offer to bring such ripples in banking sector?

Sandeep Bansal, Manipal
April 4, 2018 11:04 pm 11:04 PM

Oh man, I am eagerly waiting for that!!!

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