Jio Payments Bank Enters Digital Toll Collection Segment For Road Projects

Fintech major Jio Financial Services (JFS) said that its wholly owned payments bank, Jio Payments Bank Ltd (JPBL), has entered the digital toll collection segment by winning contracts for managing two toll plazas between Gurugram and Jaipur.

JFS said JPBL won the contract to implement the FASTag Automatic Number Plate Recognition (ANPR)-based multi-lane free flow (MLFF) toll collection system at Shahjahanpur and Manoharpura. 

The payments bank bagged the contract from the Indian Highways Management Company Ltd (IHMCL) for managing toll processing under the pilot MLFF project. JFS said that the banking subsidiary bagged two of the five contracts issued by the IHMCL pertaining to the MLFF project. 

“JPBL is already managing toll operations at 11 toll plazas on different highway stretches across the country as an acquirer bank. With the acquisition of toll management rights at these two MLFF road projects, JPBL is well-positioned to play a pivotal role in the country’s evolving infrastructure-linked digital payments landscape,” JFS said in a statement. 

The fintech major said that JPBL is also exploring synergies with Reliance Group’s technology subsidiary Jio Platforms to utilise the latter’s digital capabilities to provide digital fintech infrastructure for the rapidly growing physical infrastructure creation in the country.

What Is MLFF?

The National Highways Authority of India (NHAI) launched the MLFF to enable barrier-less toll collections using FASTag and ANPR cameras. The technology is envisioned to allow vehicles to pay tolls without stopping, thereby reducing congestion and improving tolling transparency. The NHAI plans to roll out the MLFF-based tolling at around 25 national highways in FY26. 

From the government’s perspective, the new technology adds to a plethora of digital-first initiatives taken to make highway travel seamless in the country. Earlier this month, the government announced that non-FASTag users will be charged twice the applicable user fee if the payment is made in cash, but those opting for payments via UPI will have to pay 1.25X the standard fee.

How Will JFS Benefit?

For JFS, the contract will add another revenue stream. Besides, this can also pave the way for the company to get contracts for toll management at more plazas.

The development comes at a time when JFS is adding new services to expand its suite of financial services. Last month, it also raised INR 3,956.3 Cr from its promoter group as part of its plans to raise a total of INR 15,825 Cr. 

In June, JFS also completed the acquisition of JPBL to incorporate it as its wholly owned subsidiary. The payments bank’s product portfolio includes CASA variants, including sweep and salary accounts, physical and virtual debit cards, wallets, domestic money transfer and Aadhaar-enabled payment systems. 

On the financial front, JFS reported a 4% YoY rise in net profit to INR 324.7 Cr in Q1 FY26. The company’s revenue jumped 48% to INR 612.5 Cr during the quarter from INR 417.8 Cr in Q1 FY25. 

JFS is set to declare its Q2 financial numbers on Thursday (October 16).  Shares of JFS were trading 0.11% lower at INR 307.95 on the BSE as of 14:42 IST.