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

Covid-19: Daily new cases fall below 50K

India has leaped across several significant milestones in its fight against Covid-19. The new confirmed cases in the 24 hours to Tuesday morning have fallen below 50,000 (46,790, to be precise) for the first time in nearly three months. The last time the number of new cases was close to this level was on J

Swachh Bharat Mission – Urban: A way forward for sustainable sanitation

"Sanitation is more important than independence". --Mahatma Gandhi The world is moving towards global transformation and sanitation is an important aspect in the development of any country. The United Nations (UN) has observed in 2015-16 that 19.7%

Media taking advantage of a divided Bollywood: Shatrughan Sinha

Legendary film star and politician Shatrughan Sinha has said that friendship in Bollywood is limited to onscreen, and there is no unity and some news channels are taking advantage of this situation. “Groups within the industry or their supporters may sometimes come together for some c

‘2.40 lakh TB cases went unreported in India in 2019’

In India, only 2.40 million out of an estimated 2.64 million cases of tuberculosis were reported to the government, that is, 2,40,000 TB patients went unreported, in 2019, according to the WHO Global Tuberculosis Report 2020. The reporting of TB cases, however, has significantly increased ov

We must fight for Right to Information

Fifteen years back, the Right To Information (RTI) Act became operational on October 12, 2005. It was the auspicious day of Vijayadashmi. It appeared to herald a new evolution in Indian democracy. Citizens who had been advocating this law saw an opportunity of converting India’s defective elective de

Uddhav shoots back at governor’s sarcasm

As Maharashtra governor Bhagat Singh Koshyari went sarcastic and wrote to chief minister Uddhav Thackeray, asking him if he had turned ‘secular’ – an epithet he hated, as the places of worship remain closed amid the Covid-19 pandemic; the Shiv Sena chief replied he did not need certificat

India Police Virtual Summit and Awards 2020

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter