Jio Payments Bank will launch by the end of this year. A report coming from Livemint reveals Reliance jio is working to introduce its own payment service. The payments bank a joint venture between Reliance Industries Ltd (RIL) and State Bank of India (SBI) was earlier to launch in october alongside Jio 4G Phone. The launch got delayed as the central bank wanted Jio Payment Bank to demonstrate its full capabilities. Mukesh Ambani owned RIL is the major stake owner with a ratio of 70:30 percent.
“The RBI wanted to be sure that the jio payments bank is fully compliant with all the regulations and is able to service its customers efficiently. The demonstrations are being made to assure the regulator that the standards of customer service will be sustainably maintained,” said a Jio official as per the report on livemint.
Jio Payments Bank
Reliance Jio will join the likes of Airtel, Paytm, and India post among others in this segment. Jio Payments Bank received final banking license from RBI in March. It will service customers through Jio retail outlets. The launch of payments bank will help Jio reach out to new customers. The new telecom operator already has 130 million subscribers in a period just over one year.
What is a Payments Bank?
Earlier, the Annoncement of guidelines for licensing of payments bank by the Reserve Bank of India in November 2014. A payments bank can carry out all banking operations not involving credit risk. RBI introduced the concept sighting the objective to widen the penetration of financial services to remote areas of the country. Anyone with Aadhaar Card can open an account with a payments bank.
Main Services of A Payments bank
- Accept Deposits Up to Rs. 1 Lakh
- Operate Current & Savings Accounts
- Issue ATM & Debit Cards
- Net Banking & Mobile Banking
Banking Operations that can’t be carried out by a Payments Bank include giving loan money to people & issue credit cards.
Since last year, digital transactions have gained volume. Usually, people make the use of e-wallets for payments. Jio already has Jio money which allows users to send/receive money, pay for utility bills and much more. In the first place, payment banks support more features in comparison to e-wallets. Unlike e-wallets, payments bank offer interest to customers on their deposits. Currently, Airtel Payments Bank has the highest interest rate of 7.25% percent for customers.
Top Three Payments Banks Operational at Present
Interest on Deposits
|1||Airtel Payments Bank||7.25%||1,00,000|
|2||India Post Payments Bank||5.50%||1,00,000|
|3||Paytm Payments Bank||4%||1,00,000|
Once Jio Payments bank launch date is out, a lot more information will surface and we will bring all for readers. Jio has already made a strong start in the telecom space with its aggressively priced tariff plans. Recently, the company started deliveries of its much-awaited Jio Phone. Meanwhile, Reliance Jio is all set to enter the broadband space soon with Jio Fibre launch, probably around Diwali.