After venturing into e-commerce space with Jio Mart, it appears there is no stopping Reliance Industries in the near term. According to the latest report, Mukesh Ambani-led Reliance Jio Infocomm Ltd might make its way into mutual funds and other financial products this year. The company’s digital payment platform, Jio Money, may be used to sell mutual funds. With Jio Money, users can send and receive money, recharge mobile phones and DTH connections, pay bills, and other services.
According to the report, Reliance Jio has been planning to launch financial services in 2020. As per the Reliance Jio executive, the company has been beta-testing its offerings among its employees for the past few quarters. It offers a wonderful opportunity to the company to trace out the loopholes as well to check the network and infrastructure before its final launch. It is also learned that Reliance Jio has acquired an AA aggregator license from RBI through Reliance Jio information solutions Ltd. The AA’s are responsible for gathering and distributing financial information with third parties after getting the user’s consent.
The scenario of Mutual funds Industry in India
The Mutual fund’s Industry in India is currently worth Rs 27 trillion and comprises 44 players. Few startups have entered into this space for making investment easier for the millennials. The Assets Under Management (AUM) have grown nearly 3.5 times in the past ten years. The AUMs, which were Rs 8.22lakh crore on November 30, 2009, rose to Rs 27.05 lakh crore on November 30, 2019. There has been the emergence of various online platforms such as Scripp box, Kuvera, and Groww in recent years. Also, some well-established groups like Paytm, Times group, have also made their way into this space.
Reliance Jio Payments bank, which was started in 2018, is now looking to expand its branches to 70,000 locations across the country. Jio Payments bank competes directly with the likes of Airtel Payments Bank and Paytm payments bank. It is a 70:30 joint venture between RIL and State Bank of India (SBI).