The Reserve Bank of India (RBI) has approved the conversion of Jio Financial Services Ltd from a non-banking financial company (NBFC) to a core investment company (CIC).
In November 2023, Jio Financial Services submitted an application to the RBI to convert from an NBFC to a CIC.
A core investment company is a type of NBFC in India with assets of Rs 100 crore or more, primarily engaged in acquiring shares and securities. CICs must hold at least 90% of their net assets in equity shares, preference shares, bonds, debentures, debt, or loans in group companies.
CICs accepting public funds must register with the RBI and are designed to support the financial stability of their group companies without causing systemic risks to the financial system.
Last month, Jio Financial Services launched the “JioFinance” app in beta mode, where users could instantly open and manage a bank account. The app integrated digital banking, UPI transactions, bill settlements, and insurance advisory features, offering a consolidated view of accounts and savings.
Jio aims to simplify finance on a single platform with offerings like lending, investment, insurance, payments, and transactions. Future expansions included loan solutions, starting with mutual fund loans and progressing to home loans.
Jio Financial Services, spun out of Reliance Group, saw multiple stock rallies since August last year despite no discernible business model.
In April, Jio Financial Services announced a joint venture with BlackRock to provide wealth management and brokerage services in India, with each company investing $150 million in the JV.
Edited by Suman Singh
