Jio Financial Services get RBI nod for online payment aggregator business

Jio Financial Services in a release on October 29 said that it has received approval from the Reserve Bank of India (RBI) for its arm to operate as an "online payment aggregator.

The authorisation has been given to Jio Financial's wholly-owned subsidiary Jio Payment Solutions Limited (JPSL), it added.

In a statement to the exchanges, the company said, “JPSL, a wholly owned subsidiary of the Company, vide its e-mail dated October 28, 2024, has informed the Company that the RBI 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.”

At 12.41 pm, Jio Financial Services shares were trading at ₹323.25 apiece, or 6.50 per cent up since opening on the BSE.

In February, Mukesh Ambani's Jio Financial Services had dismissed reports speculating the company was considering buying Paytm's wallet business.

AMC Business with Blackrock

In separate news on the company, Jio Financial Services and BlackRock Inc. earlier today announced the incorporation of two joint venture (JV) companies to undertake the mutual fund business.

“...two companies, “Jio BlackRock Asset Management Private Limited” and “Jio BlackRock Trustee Private Limited” have been incorporated on October 28, 2024, to carry on, inter alia, the primary business of mutual fund, subject to regulatory approvals,” Jio Financial Services said in a regulatory filing.

The two companies incorporated are Jio BlackRock Asset Management Private Limited and Jio BlackRock Trustee Private Limited.

Jio Financial Services has invested ₹82.50 crore for 8.25 crore equity shares, or 50 per cent stake, in Jio BlackRock Asset Management and ₹40 lakh for 4 lakh shares, or 50 per cent stake, in Jio BlackRock Trustee.

These joint venture companies are incorporated pursuant to the in-principle approval received by Jio Financial Services and BlackRock Financial Management Inc. to act as co-sponsors and set up the proposed mutual fund.