Reliance Jio is here with some interesting news again. The Jio Payments Bank i.e. a joint venture between Mukesh Ambani led owned Reliance Industries Ltd (RIL) and State Bank of India (SBI), will be initiating its plans from December, as stated the report by Livemint.
One of the three persons, close to this plan stated that “The payments bank was expected to launch its operations in October. The launch got delayed as the RBI had asked them (Jio Payments Bank) to demonstrate its capabilities to ensure it is ready for a glitch-free launch. The launch will now be in December”.
The initial plans stated of the launch of the payments bank being coincided with the delivery of its 4G-enabled Jio Phone in October. But the delivery of the Jio phones has already commenced.
Another Jio official close to the plan regarding that, “The RBI wanted to be sure that the payments bank is fully compliant with all the regulations and is able to service its customers efficiently. The demonstrations are being made to assure the regulator that the standards of customer service will be sustainably maintained”.
With the Jio Payments Bank, both Reliance Jio and SBI are setting their target on the last-mile customers, according to the report. Reliance Jio’s network reaches up to several rural areas. Its Jio Phone is also marketed to enhance the lives of people living in small towns and villages. Also, the report added that Reliance Jio is at present shipping the handset in remote areas, and will subsequently bring it to the urban markets. A person cited in the report said mere payments bank is definitely not the core focus of Reliance Jio.
Talking of the Payments bank concept, Airtel was the first company to initiate this in India. This is quite an enterprising project by the Government of India to bring banking and financial services to much of the population in the country. Also, anyone with an Aaadhar ID is applicable to open an account with a payments bank.
Lastly, SBI has over 420 million customers, while Reliance Jio has a reach up to 129 million subscribers as of 31st August, as per the reports published by Cellular Operators Association of India (COAI).
So, in all hopes, this joint venture will be definitely proven to beneficial to Reliance Jio in expanding its customer base through SBI.