Jio Payments Bank Secures Mutual Fund Distribution License from AMFI
| Summary/Static | Details |
|---|---|
| Why in the news? | Jio Payments Bank, a subsidiary of Jio Financial Services, obtained a mutual fund distribution license from AMFI. |
| License Type | Category 1 Execution-only Platform (EOP) |
| Scope of License | Enables distribution of direct plans of mutual fund schemes. |
| Transaction Charges | ₹2 per transaction, capped for structured revenue model. |
| Current Market Landscape | 15 Category 1 EOPs registered with AMFI; dominated by stock brokers like Groww and Zerodha. |
| Strategic Partnerships | Joint venture with BlackRock for wealth management, broking, and mutual fund distribution. |
| SEBI Approval | Jio-BlackRock joint venture received in-principle approval from SEBI for mutual fund business; final approval expected in around a year. |
| Stake Increase | Jio Financial Services increased its stake in Jio Payments Bank from 78.95% to 82.17% by investing ₹68 crore. |