Reliance Group firm Jio Financial Services announced on Tuesday that its subsidiary company Jio Payment Solutions has got the approval of Reserve Bank of India (RBI) to operate as an online payment aggregator. This marks an an significant step in India’s digital payment service.
According to the company, the certificate of authorization will be effective from October 28, 2024. With the certification, Jio Payment Solutions is allowed to manage digital transactions in compliance with Section 7 of the Payment and Settlement Systems Act, 2007.
What is a payment aggregator?
A payment aggregator is a third-party service provider that enables customers to make and businesses to accept payments online. Payment aggregators enable their clients to accept various payment methods such as debit cards, credit cards, cardless easy monthly installments, United Payments Interface transfers, bank transfers, e-wallets, and e-mandates.
Jio Financial was spun out of the Ambani-led Reliance Group last year.
Jio Payments Bank
Jio Payments Bank, part of Jio Financial Services (JFS), allows users to open digital savings accounts. For which you need to provide your biometric authentication and must have a physical debit card. It currently has over 1.5 million active users.
