Jio Payments Bank Limited has commenced operations with effect from April 3, 2018. Reliance Industries Limited, Mumbai was one of the 11 applicants which were issued an in-principle approval for setting up a payments bank.
- Jio Payments Bank is a joint venture between Reliance Industries and the country's biggest lender, State Bank of India. While Jio has a 70 percent share while SBI has the remaining 30%
- "The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India,"
- H. Srikrishnan, who was earlier with HDFC Bank and Yes Bank, has been appointed MD and CEO of Jio Payments Bank.
Promotion of Payment Banks
Reserve Bank of India is promoting Payments banks by giving services such as small savings accounts, payment or remittance services to migrant labour workforce, low-income households, small businesses and unorganised sector entities as well as other users.Payment Banks
- Payment Banks are just like traditional banks working at a small scale. Payment banks provide all banking services except for credit providing services.
- Payments banks can accept deposits of up to Rs 100,000 per account from individuals and small businesses.
- Payments banks offer zero balance accounts or no minimum balance accounts without any extra charge.
- Recently, the Central government announced "Payments Banks and Small Finance Banks" will offer social security scheme Atal Pension Yojana (APY) to their subscribers.
- Bharti Airtel was the first one to start payments bank services in India in November 2016.
Expected Questions
With which of the following banks has Jio Payment Bank was launched as a joint venture?
a. Canara Bank
b. Allahabad Bank
c. Bank of Baroda
d. State Bank of India
e. Bank of India
Recently, the Central government announced "Payments Banks and Small Finance Banks" will offer social security scheme ___________________ to their subscribers.
a. Atal Pension Yojana
b. Pradhan Mantri Jan-Dhan Yojana
c. Sukanya Samridhi Yojana
d. National Savings Certificate
e. National Pension Scheme
