Mukesh Ambani's gift on Diwali, Jio Payment now gets this license

Diwali 2024 / Mukesh Ambani's gift on Diwali, Jio Payment now gets this license

Diwali 2024 - Mukesh Ambani's gift on Diwali, Jio Payment now gets this license

Diwali 2024: Billionaire industrialist Mukesh Ambani has got a great gift before Diwali. The Reserve Bank of India (RBI) has approved Jio Payment Solutions Limited, a subsidiary of his company Jio Financial Services, to work as an online payment aggregator. With this approval, Jio will now be able to play its role as a payment aggregator across the country through services like 'Jio Pay'.

Jio's entry into the digital payment market

At present, Google Pay and PhonePe dominate the digital payment sector in India, which controls more than 60 percent of the country's digital transactions. In such a situation, the focus of RBI and National Payment Corporation of India (NPCI) is on providing payment licenses to new third-party apps. In this sequence, licenses have also been given to companies like Zomato, Cred. With this new move, Jio Financial Services has received a license from RBI as a payment aggregator, which will now allow Jio Payments to directly manage digital transactions across the country.

Jio Payment Solutions license effective

Jio Financial Services informed the stock market that after receiving this license from RBI, Jio Payment Solutions Limited will be able to manage digital transactions on its own under Section 7 of the Payment and Settlement Systems Act, 2007. With this license effective from 28 October 2024, the shares of Jio Financial Services have also seen a positive impact. On Tuesday, the company's stock rose by 1.45% and is trading above Rs 321.

Can give competition to Paytm

Last year, RBI had banned Paytm Payments Bank from adding new customers, due to which a vacuum was created in the payment bank sector. While Paytm is still struggling with this crisis, Jio Financial Services has a golden opportunity to gain a major share in this sector. Jio Payments Bank, a part of Jio Financial Services, currently offers services like digital savings account, biometric authentication and physical debit card. It has more than 15 lakh active customers, and in the coming days, Jio Financial Services aims to move towards full banking service.

Big opportunity for Jio Financial

In the form of Jio Payments Bank, Jio Financial Services has presented a new option by providing facilities like digital savings account and biometric authentication. This is not only a new experience for the customers, but also indicates bringing a new competition in the digital banking sector. Jio has a strong customer base with 15 lakh active customers from physical debit cards, and this license from RBI will give the company immense possibilities.

Conclusion

Jio Financial Services, under the leadership of Mukesh Ambani, has taken a new direction in the Indian digital payment market. Getting the payment aggregator license from RBI is a Diwali gift for the company and also an opportunity to make a strong claim in the digital finance sector.