Jio Payments Bank Ltd, a joint venture between Reliance Industries Ltd, and State Bank of India, was incorporated two days after Prime Minister Narendra Modi demonetised old Rs 1000 and Rs 500 currency notes on November 8. IE reports that the Jio Payments Bank Ltd was granted an “in-principle” approval by the Reserve Bank of India in September 2015 with a validity of 18 months, within which it was to be set up.
Jio Payments Bank was one of the most awaited entrants in this sector. It is believed that the joint venture would profit from Jio’s mobile subscriber base and SBI’s huge network across the country. Jio is already operating a prepaid wallet under the Jio Money brand.
As per the documents filed with the Registrar of Companies (RoC), Jio Payments Bank’s Board of directors has seven members including H Srikrishnan, CEO-designate of the joint venture Alok Agarwal, Manju Agarwal, SBI’s deputy managing director of (Corporate Strategy & New Business) and member of the board of National Payments Corporation of India.
Other members are: Manisha Girotra, CEO of Moelis India, Rajendra Kumar Saraf, board director for Itz Cash Card, Sethurathnam Ravi, a director on boards of several companies such as IDBI Bank Ltd, BSE Ltd, Aditya Birla Health Insurance Co Ltd, BOI Merchant Bankers Ltd, and Vivek Bhandari, president, IIHMR University.
IE reports that the RIL didn’t respond to an e-mail enquiry seeking launch date of the joint venture.
While the date of launch of Jio Payments Bank is yet to be announced, Airtel Payments Bank’s pilot went live on November 23 in Rajasthan. It was the first to became operational out of the eight proposed to be launched payment banks — Jio Payments Bank, Paytm Payments Bank, India Post Payments Bank, NSDL Payments Bank, Aditya Birla Idea Payments Bank, Fino PayTech, and Vodafone m-pesa.
The Airtel Payments Bank was an instant hit as more that 10,000 customers opened their savings account with it.
Reliance Jio infocomm chairman today announced a number of goodies for the Jio customers, including a new Jio Happy New Offer that will make all Jio services free for customers till March 2017. The announcement is poised to disrup the telecom market further and one may expect similar goodies from other operators.