MUMBAI: Jio Payments Bank Ltd has commenced operations as a payments bank with effect from April 3, 2018. 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.
Reliance Industries Ltd, Mumbai was one of the 11 applicants which were issued in-principle approval for setting up a payments bank. The payments banks cannot undertake lending, and therefore believed that the payments bank would not be subject to the same risks as a full service bank, according to RBI.
The Committee of Central Board (CCB), which was entrusted with the task of scrutinizing and approving licences, has selected entities with experience in different sectors and with different capabilities so that different models could be tried.
