This Jio Financial-subsidiary can now operate as online payment aggregator
Jio Payment Solutions Limited (JPSL), a fully-owned subsidiary of Jio Financial Services, has received the Reserve Bank of India's (RBI) nod to operate as an online payment aggregator. The move is a major milestone in India's digital payment ecosystem. The authorization comes as Jio Financial Services aims to lead the digital finance space, amid rising digital transactions.
Jio Finance shares surge
The RBI's authorization enables JPSL to manage digital transactions under Section 7 of the Payment and Settlement Systems Act, 2007. Following the development, Jio Finance shares surged, trading at ₹321.45 apiece today, up 1.45%. The news comes as Paytm continues to face regulatory action from the RBI, which has temporarily suspended its ability to onboard new customers.
Jio Payment Solutions' impact on digital financial services market
Jio Payments Bank, another company under Jio Financial Services (JFS), already offers digital savings accounts with biometric authentication and a physical debit card. The service has over 1.5 million active users who rely on it for day-to-day expenses. Now, as part of its expansion strategy, JFS plans to offer full-fledged banking services using the platform of Jio Payments Bank for savings accounts.
Jio Financial Services' performance and future ambitions
In FY24, Jio Financial Services posted an operational revenue of ₹1,853 crore and a net profit of ₹1,604 crore. The company handled nearly 1.8 million UPI payments in just April 2024, showcasing its ambition to become a top player in the digital finance space. With licenses for lending, insurance broking, and payment aggregation, Jio is primed for explosive growth in the digital finance industry.
