Jio Payments Bank Saving Pro., an India-based subsidiary of Jio Financial Services, has rolled out news of their innovative Savings Pro launch, the first-ever auto investing savings account in India. The idea is that the product will automatically turn idle money into overnight mutual funds with a goal to achieve higher returns as interest rates come down.
Jio Payment Bank dispensed with the standard savings account to come up with Savings Pro, the first save-account that features auto-investments. These types of savings accounts avert the need for customers to manually invest in short-term debt funds and thereby, receive higher returns on their idle balances than the usual bank savings accounts. It is the beginning of a big step into the payment bank business area, which is traditionally known for small margins and low returns on deposits.
The decision has come at an excellent time as deposit interest rates have gone downhill. From June 3, Jio Payment Bank has slashed its savings account interest rate to 2.50% per annum from 3.50% p.a. until February 2025. The strategy is to attract new customers by turning a revenue problem into an opportunity through auto-investments.
In June this year, Jio Payments Bank was serving a customer base of more than 2.5 million (25 lakh) accounts and had a deposit base of over USD 43 million (₹358 crore). Indian payments banks are allowed to take deposits only up to a limit of ₹2 lakh per customer. This regulation constrains them from offering savings products with the traditional banking model of increased deposits and interest rate growth.
This is a very clever move to signify the change in the business model and transition with the evolving landscape but nonetheless, the question remains, why would this be so attractive to a consumer?
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The first question that will come to the customer’s mind is: what is Savings Pro?
The answer will be along these lines — Savings Pro is a savings account combined with an auto-invest feature. It will help investors to have one consolidated savings account and at the same time will offer them the best overnight funds in the country to deposit spatially idle money.
Strategic Diversification for Sustainable Growth
CEO, Hitesh Sethia, pointed out that the company continues to consider diversifying the sources of income, a strategic move of paramount importance. Apart from Savings Pro, the bank is also centered on the likes of Aadhaar-enabled payments, domestic money transfers, and B2B UPI transactions. All these services are contributing to the bank to reach its goal of generating additional fee-based income.
In addition, Jio Payments Bank was selected by the National Highways Authority of India (NHAI) as an acquirer bank for the Toll processing with the authority to operate five National Highway toll plazas. The agency is developing its portfolio of B2B services and will be attracting a considerable amount of the transactions in India's digital payments ecosystem as a result of this move.
Market Impact and Shareholder Response
At the Annual General Meeting, Sethia described that none of the businesses under the umbrella of Jio Financial Services are at an ideal stage of the lifecycle, they all are lopsided in different directions; the main focus is how they are going to be profitable in the long run. On the BSE, the shares of Jio Financial Services’ finished at ₹310.10 which is lower by ₹5.65 or 1.79%, showing the cautiousness of the market amid the overall instability.
Still, according to the scholars, the arrival of such a product as Savings Pro may well be considered as trailblazing and could bring to light a complete new perspective of payments banks in India. By connecting savings with investment, the bank could see more prolonged patronage and higher engagement.
Industry Context: A First for India
It is a pioneering mutual fund investing savings account aggressively in India.Where traditional banks may provide linked investment products, none have seamless automatic investing of idle funds into overnight mutual funds at payments bank level.
The gesture not only benefits the depositors with easier returns, but it also facilitates the part of Jio Payments Bank where it charges asset management linkages. For India’s rapidly digitizing financial landscape, this could signify a new era of the banking sector crossing the divide between banking and investments.
FAQ’s
Q1. What is Jio Payments Bank Savings Pro?
Savings Pro is an automatic mutual fund-based savings account in India which overnight invests that is idle and offers better returns.
Q2. Why does Jio Payments Bank launch Savings Pro now?
The release comes as interest earned on deposits falls, and the bank looks to increase its revenue streams and customer value simultaneously.
Q3. How many users are served by Jio Payments Bank?
Up to June 2025, Jio Payments Bank has more than 2.5 million customers and a deposit base of Rs. 358 crore (43 million USD).
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