Jio Financial Services arm receives approval from RBI to operate as an online payment aggregator, stock up 2%

The company can operate as an online payment aggregator under Section 7 of the Payment and Settlement Systems Act, 2007. Shares of the company were trading at ₹323.90 per share on Tuesday.

This month, JPSL enabled recurring payments through UPI and e-NACH on its payments gateway. The company stated that it can onboard small merchants within 10 minutes and also offers a bank account verification solution for online investments.

JSPL reported that it will introduce a NEFT and RTGS payment solution for B2B invoice payments. Moreover, the company will establish an affordability suite that includes EMI on credit & debit cards and brand EMI.

Additionally, the company announced that it has agreed to form a joint venture with BlackRock to expand its presence in India’s asset management industry. As a result, the companies incorporated Jio BlackRock Asset Management and Jio BlackRock Trustee to carry on the primary business of mutual funds.

Jio Financial said it will invest ₹82.50 crore in Jio BlackRock Asset Management, amounting to a 50% stake in the company. Further, it will invest ₹40 lakh in Jio BlackRock Trustee for a 50% stake in the company.

Last month, the company incorporated Jio BlackRock Investment Advisers to offer wealth management services.

In Q2FY25, Jio Financial Services reported a 3.14% year-on-year (YoY) increase in net profit to ₹689 crore. The company’s total consolidated income for the quarter was up 14.14% YoY to ₹694 crore. The pre-provisioning operating profit for the quarter was up 2.7% YoY to ₹552 crore.

For the quarter ended September 30, 2024, the company reported assets under management (AUM) of ₹1,206 crore.

Shares of the company have risen by nearly 38% since the beginning of the year. The stock has gained over 47% in the past year.