Reliance Industries’ Jio Payments Bank has started operating in India as a payments bank, Reserve Bank of India (RBI) said in a statement.
In August 2015, Reliance Industries received in-principle approval from RBI to open a payments bank and received the licence to operate in March last year.
A 70-30 joint venture between Reliance Industries and the State Bank of India, the bank received the licence under Section 22 (1) of the Banking Regulation Act, 1949.
Besides Reliance Industries, ten other applicants also received in-principle approval from RBI to start payments bank in India.
Among them, telecom company Bharti Airtel launched payment bank services in November 2016, followed by Paytm Payments Bank in May 2017 last year.
FINO Payments Bank started services in June last year and Birla group’s Aditya Birla Idea Payments Bank commenced operations from February this year.
The Department of Posts, which also received approval, is currently running the services on pilot basis.
RBI introduced the concept of payments bank in order to increase financial inclusion in the country.
These banks can carry out deposit and remittance transactions but are not permitted to issue any financial products.
These banks are driven by mobile technology enabling swift and paperless transactions.