Jio Financial Services gets RBI approval to become a core investment company

Mukesh Ambani's Reliance Industries Limited (RIL), a conglomerate that focuses in energy to telecom, split out to form Jio Financial Services.

Jio Financial Services, in November 2023, submitted an application to the RBI to convert from an NBFC to a CIC, and in order to incorporate the firm, the company applied to the central bank following the demerger of RIL' financial services division, as per reports.

As per media reports, a CIC is a specialised NBFC with assets larger than Rs 100 crore.

According to the RBI circular of December 20, 2016, a CIC's primary responsibility is to purchase shares and securities subject to specific restrictions, and at least 90 percent of the CIC's net assets must be invested in bonds, debentures, equity shares, preference shares, debt, or loans made to group firms.

All CICs with assets more than Rs 100 crore are subject to the country's apex bank's regulations.

Jio Financial Services, on August 21 last year, officially debuted on the stock exchanges.

Jio Financial Services' parent firm Reliance Industries Limited will release its June quarter financial results on July 19.

According to reports, Jio Financial Services, due to an improvement in income, recorded a 6 percent increase in consolidated net profit for the fourth quarter that ended in March 2024, totaling Rs 311 crore, while the financial services firm declared a profit for the quarter ending in December of Rs 294 crore.

Besides investment and lending, Jio Financial Services also offers payment gateway, bank, and payment aggregator services.