As per the latest reports, Reliance Industries Limited, which was one out of the total of 11 applicants for payments banking licenses, has obtained the in-principle approval that was issued back in August 2015. The RBI (Reserve Bank of India) has now stated that Jio Payments Bank Limited has officially started its banking services for customers in India.
Jio Payments Bank Limited started offering services from the 3rd of April, 2018 as per reports. It will be a regulated payments bank as per the notification issued by the RBI. Bharti Airtel, the telecommunications giant, was the first entity to officially start payments bank services in India. This started back in November, 2016. Vijay Shekhar Sharma led Paytm then commenced operations for its Paytm Payments Bank last year in May. FINO Payments Bank also started its operations in June, 2017, as per reports.
Aditya Birla spearheaded Idea Payments Bank also started its operations on the 22nd of February, 2018. The Department of Posts has also obtained its license for starting a payments bank in India. However, the official launch of its services is yet to take place and the services are currently being offered as part of the pilot run.
The Reserve Bank of India (RBI) is encouraging and aiding payments banks in order to streamline and boost overall financial inclusion in India. Payments banks are empowered to offer solutions like payment/remittance and small savings accounts to lower income households, migrant labour workers, unorganized sector professionals and companies and also small businesses along with other users. This will go a long way towards formalizing the banking sector particularly in areas which are majorly unbanked and inaccessible. Payments banks are definitely set to be the next big growth vehicle for the BFSI (banking and financial services) sector in India.