Jio Payments Bank has obtained a mutual fund distribution license from AMFI. Banking & Finance | Dated: 18 Oct 2024 Jio Payments Bank Limited, a subsidiary of Jio Financial Services, has secured a Category 1 Execution-Only Platform (EOP) license from the Association of Mutual Funds in India (AMFI) for mutual fund distribution. 🎯 Key Highlights: - This license allows the bank to distribute direct mutual fund plans and earn transaction fees capped at ₹2 per transaction. - Currently, there are 15 registered Category 1 EOPs with AMFI. - AMFI-registered EOPs can charge up to ₹2 per transaction and may impose additional payment gateway charges, with AMCs providing incentives of ₹0.50 to foster competition. 💡 Other Important Facts: (i) AMFI provides mutual fund distributors with a unique identifier called the ARN (AMFI Registration Number), ensuring they are registered and compliant with industry regulations. (ii) In August 2024, Jio Financial Services increased its stake in Jio Payments Bank from 78.95% to 82.17% by investing ₹68 crore. (iii) To register for Category 1 EOP, the entity must be corporate, appoint a compliance officer, and have two key management personnel with at least three years of experience. Net worth should be ₹1 crore. 📚 Test Your Knowledge: Which organization has issued a mutual fund distribution license to Jio Payments Bank? Correct Answer: AMFI 🚀 Quick Recap: About Jio Payments Bank Limited CEO & MD : H. Srikrishnan Headquarter : Mumbai