In a late released press release, the Reserve Bank of Republic of Republic of India (RBI) has announced that the Jio Payments Bank Limited has commenced operations equally a payments banking corporation amongst number from 3rd Apr 2018. The Reserve Bank has issued a licence to the banking corporation nether Section 22 (1) of the Banking Regulation Act, 1949 to deportment on the describe of piece of job organisation of payments banking corporation inwards India.
What is Payments Bank ?
Payments banking corporation is a novel model of banks conceptualised past times the Reserve Bank of Republic of Republic of India (RBI) to further financial inclusion by providing pocket-size savings accounts in addition to payments or remittance services. A payments banking corporation is similar whatever other bank, but operating on a smaller scale without involving whatever credit risk.
In uncomplicated words, it tin deportment out almost banking operations but can’t advance loans or number credit cards. It tin convey 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 commence payment banking corporation services inwards Nov 2016.
About Jio Payments Bank
Jio Payments Bank is a articulation venture of Reliance Industries (RIL) and State Bank of Republic of Republic of India (SBI). Reliance Industries held a lxx per cent stake inwards Jio Payments Bank piece the remaining xxx per cent was amongst State Bank of Republic of Republic of India (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 eleven applicants which were issued in-principle approving for setting upwards a payments banking corporation inwards August 2015. Other eleven are,
- Aditya Birla Nuvo Limited
- Airtel 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