Jio Payment Banks begin operations in India – The Reserve Bank of India (RBI) has informed that the Jio Payments Bank has commenced its banking services from Tuesday dated 03-04-2018.
Payments banks are concept being promoted by the Reserve Bank of India (RBI) to further financial inclusion by giving services such as small scale savings accounts, payment or remittance services to migrant labour workforce, low income households, small businesses and unorganized sector entities as well as other users. Payment banks can only accept deposit but can’t lend or issue credit cards.
Reliance Jio was one of the 11 applicants which were issued in-principle approval for setting up a payments bank in August 2015. Other similar players started operation in India are Bharti Airtel, which begin the bank services in November 2016. Paytm Payments Bank began operations from May 2017 last year while FINO Payments Bank Limited kicked-off in June last year.
Birla group’s Aditya Birla Idea Payments Bank operations were started from 22 February 2018.
The department of posts, which also got a license for a payment bank is yet to start its services formally, who is running services on pilot basis currently.