Jio launch could be followed by the launch of SBI-RIL payments bank

State Bank of India (SBI )was all set to launch its much-delayed payments bank, but looks like there is still some time for it, since the private partner, Reliance Industries Limited (RIL) wants to first launch Reliance Jio, the mobile telecom leg, and then wait for it to stabilise. Only then would the payments bank would see the light of the day.

Also read: Reliance Jio 4G services launch, still few months away

"Reliance-SBI payments bank launch will follow the commercial rollout of Jio," a source aware of the developments told ET. "The plan is to leverage Jio's telecom network to offer services to its banking clients."

However, as per RIL, there has been no delay from its end, and things were going as per the plan.

"We are currently going through the process for regulatory nods to operationalise the payments bank," said an RIL spokesperson. "While we await RBI to revert on our submissions, we are following a defined regulatory process."

Also read: SBI’s net profits for first quarters down by 31.7%

The payments bank will most likely be aligned with Jio's network across the country, offering 4G-based banking services to its customers. With Jio’s launch expected around Diwali, the payments bank would most likely be launched a couple of months later.

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"RIL has applied to RBI and a full fledged licence is expected soon," another source said. "This model is most suitable for telecom operators. Hence, there will be a lot of synergy with Jio telecom."

Also read: Tech Mahindra chickens out of payments bank race, cites delayed profitability and tough competition

It was in July this year that RIL and SBI signed a shareholder agreement, as per which the promoter will own 70%, with the rest 30% owned by the banking partner.

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