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

Govt announces strategic collaboration to empower Atal Tinkering Lab schools

Atal Innovation Mission, NITI Aayog and All India Council for Technical Education (AICTE), and Ministry of Education’s Innovation Cell has announced their strategic collaboration which aims to empower Atal Tinkering Lab school (ATLs) students for world-class future-ready

Agriculture Min signs MoU with Microsoft to develop smart interface for farmers

Union Ministry of Agriculture and Microsoft India has inked a Memorandum of Understanding (MoU) for a pilot project in 100 villages of six states to develop farmer interface for smart and well-organized agriculture, including post-harvest management and distribution. The pilot

NIXI inaugurates new initiatives to improve IPV6 adoption

Ajay Prakash Sawhney, Secretary Ministry of Electronics & Information Technology (MeitY) & Chairman NIXI has inaugurated three initiatives of the National Internet Exchange of India (NIXI). With this launch, NIXI has announced to play a supporting role for the IPv6 aw

India’s Second Wave crosses 2-lakh milestone

The Second Wave in India seems unstoppable. The number of daily new cases crossed the 2,00,000 figure on Thursday morning, which is the highest ever anywhere in the world. Most of the burden – 81 percent cases – is from ten states with Maharashtra continuing to lead the tally. The national capi

Govt approves stepping up of Remdesivir Drug production

The government has reviewed the issue of availability of Remdesivir Drug and has decided to increase the production and decrease the price of the drug. The government has​ also issued a ban on its export. Remdesivir is the first drug approved by the FDA for treating the SAR

NCSC Online Grievance Management Portal for scheduled castes

Union Minister for Communication & IT and Law & Justice Ravi Shankar Prasad launched the Online Grievance Management Portal of National Commission for Scheduled Castes (NCSC) in the presence of Minister of State for Social Justice & Empowerment Shri Rattan Lala Kata

Visionary talk series with Nupur Sharma, National Spokesperson, BJP



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter