The board of directors of Mukesh Ambani-led Reliance Industries Limited approved the demerger of its financial services undertaking into Reliance Strategic Investments Limited (RSIL), to be renamed Jio Financial Services Limited (JFSL). RBI-registered non-deposit-taking systemically important NBFC, RSIL is currently a wholly-owned subsidiary of RIL.
Jio Financial Services Ltd will be listed separately on the stock exchanges. The company hopes to tap the growing demand for new age financial services for retail and small-business customers through this move.
Mukesh Ambani, chairman and managing director of Reliance Industries Limited said “ JFS will be a technology-led business, delivering financial products digitally by leveraging the nation-wide omnichannel presence of Reliance’s consumer businesses.”
He also added that “It will be a truly transformational, customer-centric and digital-first financial services enterprise offering simple, affordable, innovative and intuitive financial services products to all Indians.”
Reliance aims to acquire liquid assets to provide adequate regulatory capital for lending to JFS through the demerger scheme. Other financial services verticals such as insurance, payments, digital broking, and asset management are also on the cards.
JFS will launch a consumer and merchant lending business as the company feels that the Indian financial services sector is poised to undergo a digital transformation.
Shareholders of RIL will receive one equity share of JFSL for one share.