Jio Payments Bank: Invest Idle Deposits in MFs

Mumbai, Aug 28 (PTI) The Jio Payments Bank is mulling to introduce an offering which will auto-invest customers' idle deposits in overnight mutual funds for higher returns, a top official said on Thursday.

Addressing shareholders at the annual general meeting, Jio Financial Services' managing director and chief executive Hitesh Sethia said the company, which has partnered with global brands like BlackRock for asset management and Allianz for insurance in the past, will be entering more "strategic tie-ups" to expand its portfolio.

The Jio Payments Bank was serving over 25 lakh customers and had a deposit base of over Rs 358 crore as of June this year. Payments banks are primarily aimed at offering payments and remittances to customers, and have restrictions including a Rs 2 lakh cap on the maximum permissible deposits.

"The Payments Bank is soon going to launch an innovative new product, called Savings Pro, which will bring to customers India's first savings account that auto-invests idle cash in overnight mutual funds for better returns," Sethia said.

The rate cuts have seen the interest rate offered for Jio Payments Bank customers decline to 2.50 per cent per annum from June 3, down from 3.50 per cent that were existent pre-February 2025.

Diversifying revenue streams is a focus for the payments bank, Sethia said, pointing out that services like Aadhaar-enabled payments, domestic money transfers, and B2B UPI will help in this aspect.

JPB has been empanelled by the National Highways Authority of India as an acquirer bank for toll processing, with a mandate to manage five National Highway toll plazas, he said.

Sethia said each of Jio Financial Services' businesses is in a different stage of its lifecycle, and the parent entity is focusing on unit economics to bring products and services which are relevant to Indian customers.

He also affirmed to ensure that the company, a spin-off from Reliance Industries, grows responsibly, under which every business is scaled within clearly laid-down risk and governance guardrails.

Jio Credit, the non-bank lending entity under JFS, is now present in 11 cities and was managing Rs 11,600 crore in assets as of June, which included home loans, loans against property and corporate loans.

Sethia also said that the parent company has successfully implemented a 'Single Customer View' platform, which gives an "unified view" of customers for "enhanced insights and more effective engagement".

There are over 80 lakh monthly active users on the Jiofinance app, and products like tax filing and planning have gone live, he said.

JFS Chairman K V Kamath said the country is on the threshold of an extraordinary decade and stressed that the growth remains resilient even in the face of prevailing global uncertainties.

"With the rise of artificial intelligence and advanced analytics, we are on the verge of a fundamental shift in how we assess risk, offer credit, provide insurance, and democratize investment opportunities," Kamath said.