Days ahead of Diwali, Mukesh Ambani, Reliance Industries chairman, has received approval from RBI for his Jio Payment Solutions Limited (JPSL). The company can now operate as an online payment aggregator and is set to enter into India's digital payment services. JPSL is a wholly-owned subsidiary of Jio Financial Services, whose market cap is Rs 2.07 lakh crore.
"The Reserve Bank of India has granted certificate of authorisation to JPSL to operate as an 'Online Payment Aggregator' under Section 7 of the Payment and Settlement Systems Act, 2007, with effect from October 28, 2024," the company said in a release.
Hours after the news, Jio Finance shares price hiked by over 2.50 per cent. The shares were earlier trading at Rs 321.45 apiece, up 1.45 per cent on Tuesday. It closed at Rs 325.80 on the National Stock Exchange (NSE) today. The Jio company will set to compete with Paytm.
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Jio Payments Bank, part of Jio Financial Services (JFS), currently provides digital savings accounts with biometric authentication and a physical debit card. Moreover, JFS has rolled out SmartGold on its JioFinance app, allowing users to invest in digital gold starting at just Rs 10. JFS is a subsidiary of Reliance Industries. It was demerged as an independent entity and listed on the Indian stock exchanges in August 2023.
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