SBI and RIL partnership in danger
The formal launch of this bank has been postponed for more than 4 years. Jio Payments Bank was founded in April 2018 and is a joint venture between SBI and Reliance Industries.
The slowdown in the business of payment banks has started affecting the companies planning to open such banks. The latest example is of Jio Payments Bank. If you can’t find some business idea then Reliance ( Reliance Industries) Your Jio Payments Bank (Jio Payments BankThe country’s largest bank State Bank of India (State Bank of India) is not starting operations completely and in order to drag Reliance’s foot back.State Bank of India) is also confused. Actually, SBI has a partnership in Jio Payments Bank. The situation is that even after 4 years of the 5 year agreement, SBI has not received any business plan from Reliance Industries. Taking this seriously, SBI has given an ultimatum that either the company should give a business plan soon or they should exit the agreement.
what is the matter
In fact, even after years of efforts, Jio Payments Bank is not able to be fully launched, so now SBI is planning to exit from this partnership. According to a news, SBI has now given an ultimatum to Reliance that if it does not give a business plan regarding Payments Bank soon, then it may be forced to exit the joint venture. Reliance has been stuck for a long time in bringing a solid business plan of Jio Payments Bank. The formal launch of this bank has been postponed for more than 4 years. The foundation of Jio Payments Bank was laid in April 2018… and it is a joint venture of SBI and Reliance Industries. The five-year agreement between the two ends at the beginning of next year.
Promise to give business plan by September
SBI officials say that Reliance has promised to give a business plan regarding the payments bank by September. If it doesn’t happen by then, they may have to take their own decision. In fact, what happened is that SBI and RIL were thinking of breaking into the business of other payment companies through this payment bank. Only Jio Payments Bank will get the benefit of this. SBI’s job was to give the advantage of its tremendous network to Jio Payments Bank with the structuring of products and its expertise in this segment, but, all this did not happen. Due to UPI, the business of payment banks has become useless. About 6 years ago RBI had given 11 payment bank licenses. At present, only 6 payments banks are left i.e. companies do not have the confidence of earning in these payments banks. The same thing is troubling Reliance too. Well… by September, Reliance has to give the plan of Jio Payments Bank. Only then will it be known whether this bank will really become a ground reality or not.
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