A joint venture of Reliance Jio and SBI (State Bank of India), Jio Payments Bank has started its commercial operations from Tuesday.
In a statement, the Reserve Bank of India said, “Jio Payments Bank Limited has commenced operations as a payments bank with effect from April 3, 2018.”
Jio Payments Bank was one of the 11 applicants that were issued in-principle approvals to set up payments banks back in 2015
Jio Payments Bank is a 70:30 joint venture between RIL and the government-run SBI. Through the partnership, SBI is looking to leverage Reliance Jio’s telecom network to connect last-mile customers, especially in the country’s unbanked rural areas.
In exchange, Reliance Jio will have access to the SBI’s wide customer base across the country. The company had planned to launch the payments bank with the Reliance Jio feature phone, which it has already started selling.