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Yak Jio Payments Banking Concern Begins Operations : Highlights

In a of late released press release, the Reserve Bank of Bharat (RBI) has announced that the Jio Payments Bank Limited has commenced operations every bit a payments banking enterprise amongst consequence from 3rd Apr 2018. The Reserve Bank has issued a licence to the banking enterprise nether Section 22 (1) of the Banking Regulation Act, 1949 to comport on the trouble organisation of payments banking enterprise inward India.

What is Payments Bank ?

Payments banking enterprise is a novel model of banks conceptualised yesteryear the Reserve Bank of Bharat (RBI) to further financial inclusion by providing minor savings accounts in addition to payments or remittance services. Influenza A virus subtype H5N1 payments banking enterprise is similar whatever other bank, but operating on a smaller scale without involving whatever credit risk. 

In uncomplicated words, it tin comport out nearly banking operations but can’t advance loans or number credit cards. It tin bring need deposits (up to Rs 1 lakh), offering remittance services, mobile payments/transfers/purchases in addition to other banking services similar ATM/debit cards, cyberspace banking in addition to 3rd political party fund transfers. Telecom major Bharti Airtel was the starting fourth dimension to start out payment banking enterprise services inward Nov 2016.

About Jio Payments Bank

Jio Payments Bank is a articulation venture of Reliance Industries (RIL) and State Bank of Bharat (SBI). Reliance Industries held a seventy per cent stake inward Jio Payments Bank land the remaining thirty per cent was amongst State Bank of Bharat (SBI).  

H. Srikrishnan, who was before amongst HDFC Bank in addition to Yes Bank, has been appointed MD in addition to CEO of Jio Payments Bank.

Important Note :
Reliance Industries Ltd was i of the xi applicants which were issued in-principle approving for setting upwardly a payments banking enterprise inward August 2015. Other xi are,
  • Aditya Birla Nuvo Limited
  • Airtel one one thousand Commerce Services Limited
  • Cholamandalam Distribution Services Limited
  • Department of Posts
  • Fino PayTech Limited
  • National Securities Depository Limited
  • Reliance Industries Limited
  • Dilip Shantilal Shanghvi
  • Vijay Shekhar Sharma
  • Tech Mahindra Limited
  • Vodafone m-pesa Limited
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