Jio Financial Services get RBI nod for online payment business

Jio Payment Solutions Limited (JPSL), the wholly-owned subsidiary of Jio Financial Services Ltd (JFSL), has received approval from the Reserve Bank of India (RBI) to function as an online payment service provider.

In a stock exchange release on 29 October, the Mukesh Ambani firm said JPSL has been authorised to carry out the business of 'Online Payment Aggregator' from 28 October.

Earlier, in February, Jio Financial Services had dismissed reports suggesting that the company was considering to acquire Paytm's wallet business.

In a separate regulatory filing, Jio Financial Services and BlackRock Inc today said they have incorporated two joint ventures to undertake the mutual fund business.

The two companies - Jio BlackRock Asset Management Private Limited and Jio BlackRock Trustee Private Limited – will, primarily, carry on with the business of mutual fund, subject to regulatory approvals, JFSL said in its filing.

Jio BlackRock Asset Management Private Limited has a corpus of Rs165 crore consisting of 82.5 million equity shares while Jio BlackRock Trustee Private Limited has a equity base of Rs80 lakh comprising 4 lakh shares.

Both Jio Financial Services and Black Rock hold equal stake in both the joint ventures, according to the filing.

RBI has granted in-principle approval for the JFSL-Blak Rock joint venture for their proposed mutual fund business.

Jio Financial Services also announced the launch of its digital gold initiative `SmartGold’ on Dhanteras.

SmartGold, a fully digital process for purchasing gold, also allows redemption of investments against cash, gold coins, or jewellery. 

Customers can track live market prices of gold through the JioFinance app as also purchase gold in flexible value of quantity denominations, with provision for home delivery of gold coins.