India Post launches payments bank

Pilots begins in Chhattisgarh and Jharkhand

GN Bureau | January 30, 2017


#India Post Payments Bank   #Chhattisgarh   #Jharkhand  


India Post has launched pilot operations of its payments bank – India Post Payments Bank (IPPB) – in Raipur, Chhattisgarh and Ranchi, Jharkhand on Monday.

There are over 1,54,882 post offices across India, of which 1,39,182 (89.86%) are in rural areas, according to data by department of posts as on March 31, 2016. With the high coverage in rural areas, IPPB will effectively be able to tap on the targeted sectors.

India Post is also planning to open 650 new branches for the payments bank.

The Reserve Bank of India (RBI) had given in-principal licence to launch payments banks in August 2016. The government-operated postal network, India Post, is among the 11 entities that received the licence. Three companies out of 11, however, surrendered their licence. Those companies were Chalomandalam Distribution Services, Sun Pharmaceutical Industries Limited and Tech Mahindra.

The objective behind granting the licence was to financially include those with small saving accounts, low-income households, small businesses and unorganised sector.

Unlike other commercial banks, payments banks are not allowed to give credit or loans. These banks are, however, allowed to make arrangements with other commercial and small finance banks, having prior permission from the RBI. Those having a bank account in a payments bank can keep deposits up to Rs 1 lakh. Account holders in these banks get cheque books, debit card and interest on their deposits.

Airtel, India’s leading telecom service provider, was among the first licence holder to roll out its payments bank services for 29 states.

Paytm, a digital wallet company, announced the launch of its payments bank on January 15. At present, the company is converting its existing users into account holders.
 

Comments

 

Other News

Mumbai Development Plan annoys activists and experts

Approximately one-eighth of Mumbai’s existing landmass is proposed to be added for development works, especially for housing of low income groups. Maharashtra CM Devendra Fadnavis gave green signal to the 2034 development plan that will make more land available by adding over 3,650 he

My musical journey has been really beautiful: Harshdeep Kaur

Harshdeep Kaur is a playback singer better known for her Sufi renditions. She sings Hindi as well as Punjabi. She sang ‘Ik Onkar’ in Rang De Basanti apart from several other soulful songs. Her track ‘R.I.P.’ composed by AR Rahman was part of Oscar-winner Danny Boyle’s film

BJP lawmakers top the list in hate speech cases

Out of all MPs and MLAs in office, 58 have declared cases related to hate speech. This includes union minister for drinking water and sanitation Uma Bharti along with 14 other Lok Sabha MPs. The list also includes 8 state ministers. A party wise analysis reveals that BJP has the highest numb

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

Togadia, Sinha and anti-Modi prejudices masked by empty rhetoric

There is an uncanny similarity in the pathological opposition to prime minister Narendra Modi by two members of the right wing, Pravin Togadia and Yashwant Sinha. They come from a diverse social and political background; yet they share a common strand that shows an unmitigated hatred towards

“We are becoming American digital colonies”

Data is the new oil; and it needs to be protected. In an interaction with Governance Now, Lionel Baraban, CEO of Famoco, talks about how the French tech firm is developing secure business devices to safeguard data against going to other countries. What are the major roles o

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter