RBI Approves Bajaj Finance To Launch Digital Wallet

The Reserve Bank of India (RBI) has granted the company perpetual validity for its entry into the market. For its entry into the market, the Reserve Bank of India (RBI) has granted the company perpetual validity. This will be included in Bajaj Pay, the company's effort to consolidate all payment solutions into one platform.

The RBI's approval for Bajaj Finance to have a wallet is permanent, which means the company will no longer need to seek approval from the RBI every year, as was previously necessary.

Bajaj Finance's digital wallet is part of the consumer NBFC's larger plan to extend its digital finance offerings. To expand into the payments market, the company has been rolling out 'Bajaj Pay' in stages.

Bharat Bill Pay System went live on Bajaj Pay in January, according to the company's quarterly investor presentation. In May, a fully functional UPI payment option is expected to be available.

The company announced last week that its consolidated profit for the fiscal year 2021 increased from Rs 948 crore in FY20 to Rs 1,347 crore in FY21.

What are Prepaid Payment Instruments (PPIs)?

Pre-paid Payment Instruments (PPIs) are payment instruments that allow transactions such as the purchase of goods and services, as well as the transfer of funds, using the value stored on the instrument.

The Reserve Bank of India licenses and regulates these prepaid payment instruments under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007. (PSS Act, 2007).

Shares of the company were seen trading at Rs 5,611 up 1.75% at 9.39 am IST.