Posted on December 15, 2020 in
Written by: David B. Honig
Mumbai: Reliance Industries Ltd (RIL) and State Bank of India (SBI), the country`s largest lender, have signed the subscription and shareholder contracts of their payment bank. Energy and telecommunications conglomerate Reliance Industries and India`s largest lender, SBI, have signed shareholder agreements for the creation of small deposit guarantee institutions, the payment bank. Thomas Franco, former general secretary of the India Bank Officers Confederation, told NewsClick: “When it was created, it was said that the partnership with Reliance SBI would help reach rural areas and innovate in technology. Today, SBI is the largest bank in the country. It has no restrictions on the opening of more branches across the country. There is no need for a partnership between Reliance Jio. The Post Office also provides payment banking services on a pilot basis. Several other lenders, a large technology company, a card operator and some payment network players are also expected to join the proposed bank payment consortium, he said. Jio`s proposal comes at a time when the regulator… Mr Franco added: “SBI has always been a technology leader for the banking sector.
The first central bank solution was introduced by SBI. The bank even created the SBI Institute of Innovation and Technology, and modified the software to meet our terms. “In addition, the bank may conduct transactions with suppliers and suppliers, Kirana stores and other related businesses and businesses related to its telecommunications services and retail. It would work in large quantities and once allowed, it could delay other banks` transactions,” he added. Unlike ordinary commercial banks, payment banks are not allowed to lend. In addition, they cannot accept a deposit over the Rs 1 lakh. In these circumstances, even if Jio holds hundreds of surplus cash from the reliance group company during the day, it must defer additional funds (via Rs 1 Lakh) until the end of opening hours to another planned commercial bank. Jio Payments Bank was established in April 2018 as a joint venture between SBI and Reliance Jio.
It is a 30:70 joint venture between the two companies, with a 30% stake of 30% for a value of Rs 69.3307,” as indicated in the bank`s management report for 2018-19. Reliance Industries held a 70% stake in Jio Payments Bank, with the remaining 30% in the State Bank of India (SBI), according to the energy group`s 2017 annual report. The company said the Agra-Etawah construction-company-transfer project had received a completion certificate. Mumbai/Gurugram: There is a classic story. On a cold night, a camel asks his master if he could put his nose in his tent of heat. “Definitely and welcome,” said the man, and the camel first reached out his nose, then his head in the tent. Given that JioMart is marketed in an environment well suited to the provision of digital services, it is likely that Jio Payments Banks` customer base will increase. Jio Payments Bank was licensed under Section 22 (1) of the Banking Regulation Act, 1949, the RBI said. “The subscription and shareholder agreement was signed on June 30, 2016 by RIL as a project promoter with a 70% equity contribution and SBI as a joint venture with a 30% equity contribution,” the company led by Mukesh Ambani said in a stock exchange statement.