Mumbai: The Reserve Bank of India (RBI) said Jio Payments Bank has commenced its banking services from Tuesday.
Reliance Industries Ltd was one of the 11 applicants which were issued in-principle approval for setting up a payments bank in August 2015. “Jio Payments Bank Limited has commenced operations as a payments bank with effect from April 3, 2018," RBI said in a notification.
Telecom major Bharti Airtel was the first to begin payment bank services in November 2016. Paytm founder Vijay Shekhar Sharma promoted Paytm Payments Bank began operations from May 2017 last year while FINO Payments Bank Limited kicked-off in June last year.
Birla group’s Aditya Birla Idea Payments Bank was the latest in this space whose operations were started from 22 February this year. While, the department of posts, which also got a license for a payment bank is yet to start its services formally, who is running services on pilot basis currently.
Payments banks are being promoted by the Reserve Bank to further financial inclusion by giving services such as small savings accounts, payment or remittance services to migrant labour workforce, low income households, small businesses and unorganised sector entities as well as other users.