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One of the leading telecoms globally which is acclaimed of the largest telecom in terms of the data transaction that its user performs, Jio is collaborating with SBI to form a Joint Venture for the launch of Jio Payment’s Bank. Earlier to showcase Jio Chat offerings, Jio collaborated with one of the leading prime time show Kaun Banega Crorepati to showcase its product Jio Chat.
As per the planned launch, the JV to launch its payments bank by December this year. The JV will involve Reliance Industries Ltd (RIL) and SBI to commence their operations as the nation 5th Payment Bank after Airtel, Paytm, India Post, and Fino Payments Bank. With this association, Jio will be envisaging an opportunity to permeate into the payments arena of more than 129 Million consumers across its platform. On the other hand, with over 420 million users across SBI platform, it opens up the possibility for Jio to onboard the remaining SBI account holders as Jio’s onboarding users.
Jio is yet to come with an official announcement around this however looking at the market speculations it is more or less confirmed Jio’s move. Since the start of Jio, it had believed in bringing things much bigger than any other telecom would have even dared to achieve. Be It prices or connectivity through 4G data. Jio has been declared to be the fastest growing telecom to have achieved 100 million users in lesser time than any other telecom operator across the globe.
What is a Payment Bank?
Payments banks are a new model of banks conceptualised by the Reserve Bank of India (RBI). These banks can accept a restricted deposit which is currently limited to INR 1 lakh per customer account. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks.
As the entire India was lurching due to the Demonetisation of INR500 and 1000 currency, RBI had given in-principle approval to the below list of people/organisation for Payment Banks. This move is seen to bring in more competition to the existing Fintech Companies like Paytm which are capitalising on this lifetime opportunity. Recently paytm has crossed 50 million downloads of their mobile app as well as launched a service for merchants to accept debit and credit cards across India through Paytm POS App .
- Aditya Birla Nuvo Ltd
- Airtel M Commerce Services Ltd
- Department of Posts
- Fino PayTech Ltd
- National Securities Depository Ltd
- Reliance Industries Ltd
- Vijay Shekhar Sharma, Paytm
- Vodafone mpesa Ltd
Other than the above listed entities three have surrendered their licenses. First one being “Chalomandalam Distribution Services”, then “Dilip Shanghvi, Sun Pharmaceuticals” and the latest, “Tech Mahindra