Billionaire industrialist Mukesh Ambani has received a wonderful gift before Diwali. He has received this gift from the Reserve Bank of India (RBI). On Tuesday, RBI gave consent to Jio Payment Solutions Limited, a subsidiary of Jio Financial Services, to work as an online payment aggregator. This company, which runs services like ‘Jio Pay’, will now be able to work as a payment aggregator across the country.
At present, Google Pay and PhonePe dominate the digital payment sector in the country. They handle more than 60 percent of the transactions in the digital payment segment. Therefore, RBI and National Payment Corporation of India (NPCI) are also currently giving payment licenses to new third party apps in the country. This includes Zomato, Cred etc.
Jio payment will become aggregator
Jio Financial Services informed the stock market that it has received the license of payment aggregator from RBI. This has become effective from 28 October 2024. Under Section 7 of the Payment and Settlement Systems Act-2007, Jio Payment Solutions will now be able to manage digital transactions on its own.
The effect of this license given to the company has also been seen on the shares of Jio Financial Services. On Tuesday, a rise of up to 1.45 percent was seen in the company’s shares and it is trading at a price above Rs 321.
Will Jio Payment Bank replace Paytm?
Last year, RBI had banned Paytm from onboarding new customers on Paytm Payments Bank service. Since then there is a vacant space lying in the market at the payment bank level. Paytm is still facing the crisis arising out of this action. In such a situation, Jio will now have a chance to gain a larger share in the digital finance services market.
Jio Payments Bank is a part of Jio Financial Services. At present, this bank provides digital savings account facility to the people. Biometric authentication is used for this. People are issued a physical debit card. It has 15 lakh active customers. Jio Financial Services is trying to go full banking service in the coming days.
