How Jio Saves 60,000 Crores Per Year for India?

In a research report from Institute for Competitiveness (IFC), the Indian citizens have saved at least 60,000 crores in a year after Reliance Jio started its services. Jio was officially launched in September 2016 and was able to quickly attract a huge customer base with its mind-blowing free and cheap offers.

One can understand the level of impact by looking at the fact that after Jio started its services, the cost of 1GB high-speed data has dropped by whopping 96% from Rs 152 to Rs 6. This has led the Indian economy save at least 60,000 Crore INR in annual savings for consumers and will expand India's per capita GDP by about 5.65 per cent, said the report.

Jio has made data accessible and affordable, with average prices per GB dropping drastically, bringing the internet within the reach of a previously inaccessible group of the Indian population. Such a drastic reduction in data prices has also allowed newer segments of society to use and experience it for the first time.

"As per our calculations, even the most conservative estimate shows that due to Jio's entry, the annual financial savings to the consumers would be to the tune of USD 10 billion," said the report by Institute for Competitiveness(IFC). It said econometric analysis shows that through widespread network effects, Jio's entry would enhance India's GDP by about 5.65 per cent, if everything else in the economy remains constant.

The effect on GDP growth due to higher Internet penetration will not just be a contribution of the telecom sector but also the various externalises that arise out of the internet economy, it said. IFC analysed Jio's entry to measure the impact of internet penetration on economic growth. The model used data from 18 states from 2004-14 and showed that a 10 per cent increase in internet penetration led to per capita GDP rising by 3.9 per cent, if all else remains constant.

"Since Jio's entry into the Indian telecom markets on September 2016, the face of the industry has not remained the same. It changed the basis of competition by offering free lifetime calling to its consumers in an industry that derived 75 per cent of its revenue from voice," the report said. Within six months of Jio's launch, India became the highest mobile data user in the world consuming over 1 billion GB data every month as compared to 200 million GB earlier.

At the end of 2017, Jio users consumed almost 10 GB data, 700 minutes of voice and 134 hours of video every month on an average. "Data usage in the country has soared. India is now only second to China in terms of app downloads. Such levels of digital consumption were unprecedented a year-and-a-half ago," it said.

Click Here to Read our earlier post about Jio Impacts.

Jio Payment Bank started - Official confirmation from RBI

One more good news for Jio users. The Reserve Bank of India has officially announced that Reliance Jio Payment Bank Limited has commenced operations as a payments bank with effect from April 3,2018. This is a joint venture between Reliance Jio and SBI (State Bank of India). RIL and SBI have a share of 70 and 30 respectively.

With the help of this partnership, State Bank of India (SBI) is looking to leverage Reliance Jio’s telecom network to connect even the remote customers, especially the rural people where SBI has not yet penetrated its wing. Under this venture, Reliance Jio will have access to the SBI’s wide customer base across the country. The company had planned to launch the payments bank with the Reliance Jio feature phone, which it has already started selling.

The RBI initiated the Idea of Online Payment Banks to support financial requirements of citizens, especially with a focus on extending services to low income households, small business, unorganized sector users, migrant workforce. The services include opening a small savings account, payment and remittances.

Reliance Jio was one of the eleven applicants for license of starting a Digital Payments Bank. These 11 applicants were given in-principle approval to begin work on starting payments bank. Among the telecom leaders, Bharti Airtel was the first to start the payments bank in November 2016. However, in next few months, it had to face extensive criticism for opening bank accounts without the prior approval from Airtel customers. The UIADI identified that Airtel Payments bank not only created unauthorized bank accounts without proper customer approval ( the Aadhaar based eKYC system was used for this), it also diverted the subsidy amounts to the newly created bank accounts without making aware of this to the beneficiaries.

After this incident, RBI and UIADI have tightened the rules around approving new payments bank and the way they work. With new entrants into this sector, it is expected that the business of banking is going to be much easier and sophisticated. With Jio Payments bank beginning operations, it can be believed that this aim will get a huge boost, especially with the cheap feature phone like JioPhone reaching remote corners of Rural India.

Procedure to avail Jio Prime Free Extension offer

Reliance Jio has announced one more bonanza offer to all Jio prime members. Now you can get the Jio prime extended for 12 more months for absolutely free. In this post, we will share you the procedure to get your Jio Prime extended for free of cost and save 99 rupees and enjoy the amazing prime benefits for one more year uninterrupted.

In an official press release , the company said that all the existing Prime subscribers will be able to retain their annual membership at no additional cost till March 31, 2019. Please note that this is a limited period offer as highlighted by company in bold lines. The statement said “All Jio prime members who have subscribed to the exclusive membership benefits till 31st March 2018 will get another year of complimentary PRIME benefits at NO additional fee (LIMITED PERIOD OFFER). Jio deeply values its loyal PRIME members and will continue to deliver additional benefits and superior value to these founding members. For new Jio users, the Jio Prime Membership continues to be available at an annual membership fees of Rs 99,” read the company's statement.

Prime membership system was introduced in 2017 in which a user has to pay a fee of Rs 99 to avail Jio had introduced the Prime membership program in 2017 under which users have to pay an annual fee of Rs 99 to avail additional hosts of benefits including free voice calls.

To own this new gift, the users have to follow a simple procedure to express interest in this bonanza offer.

Step 1:

Download the MyJio app and sign in using your relevant credentials of the SIM for which you want to get the Jio Prime extended. If you have multiple SIM cards, we suggest that you link all other SIMS to your main accounts by following steps mentioned in our previous post "How to add new Jio link account".

Step 2:

After successful sign in, you will notice a Red color banner running on the top of home page with wordings like “Congratulations! Extend Jio Prime free for a year”. In case, if you did not see this red-banner even though your SIM is active and you were prime member previously, we recommend to uninstall and reinstall the Myjio app. Now you must be able to see the red banner with offer details.

Step 3:

In order to avail the Prime membership for another year, you have to click on the "Get Now" button placed on the Red banner.

Step 4:

Once done, another screen will pop up with a message reading, “Jio Prime is getting bigger, you are a valued Jio Prime member. And we are extending one full year's subscription absolutely free for you." Just below the message you will notice the Jio numbers listed in your name. Select the one whose Prime membership plan you want to get extended.

Step 5:

After selecting the number, users need to tap on the proceed button placed at the bottom of the screen.

Step 6:

Then another screen will open with a message written “Request raised successfully, Your request to avail free Jio Prime membership for a year has been registered successfully, we will get back to you shortly”. Now click on 'Done' button.

After completing this process you will get a message that your Prime membership has been extended for an year.