Pan India rollout of India Post Payments Bank to begin in April

There would be complete integration of IPPB branches with the 1.55 lakh Post offices so that each Post office functions as both, a DoP outlet and an access point for the Payments Bank

GN Bureau | March 28, 2018


#India Post   #Payment Banks   #Manoj Sinha   #Banking  


Pan India Rollout of 650 branches of the India Post Payments Bank is to commence from April, 2018, parliament was informed.

Union minister Manoj Sinha said that the India Post Payments Bank (IPPB) has been incorporated as a public limited company under Department of Posts (DoP) with 100% Government of India equity on August 17, 2016.

Read: India gets payments banks


IPPB aims to drive financial inclusion at the last mile, by bringing customers under formal banking channels and providing access to banking services at affordable rates. There are multiple socio-economic benefits that would be realized by the economy at large:

(i) Migration from cash based transaction to digital economy, thus removing intermediaries leading to a more economical and efficient settlement of transactions

(ii) Reduction in opportunity costs in availing banking and financial services leading to higher economic outputs

(iii) Access to formal credit channels (through 3rd party tie ups) leading to increase in business capacity (at better rates) and productivity compared to the higher costs incurred otherwise, leading to higher income and lower costs

The minister said that the Reserve Bank of India (RBI) has granted Payments Bank License to the department on January 20, 2017 and since then IPPB has launched its two pilot branches one each in Raipur (Chhattisgarh) and Ranchi (Jharkhand). There would be complete integration of IPPB branches with the 1.55 lakh Post offices so that each Post office functions as both, a DoP outlet and an access point for the Payments Bank, subject to technical and commercial feasibility.

Sinha said that India Post Payments Bank is in early stages of discussion with various global and domestic institutions to enhance their product suite, as per the Payment Bank guidelines governing 3rd party products.

IPPB has not installed any ATMs so far. However, IPPB will leverage the DoP ATMs for its banking operations, which are already connected with the network of ATMs of other banks. IPPB has issued 8,638 debit cards to its customers at the Raipur and Ranchi branches and access points.

 

Comments

 

Other News

MoEFCC and CAQM launch ‘The Breath of Change’

To tackle air pollution in Delhi-NCR through public participation and creative engagement, the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Commission for Air Quality Management (CAQM) have jointly launched a strategic communication campaign titled The Breath of Change.

India well on way to becoming a global IP powerhouse

Intellectual Property (IP) has evolved into a critical component of innovation and global competitiveness in India’s economy. As businesses pivot toward intangible assets like data, algorithms and branding, IP protection is no longer a matter of formality—it is a strategic imperative. The last

War and Peace: The conundrum of conflict in West Asia

Israel and Palestine have been the harbinger of troubles for the last 80-odd years. It is an unending and persistent saga of conflict and attrition which has bloodied the political, societal and economic turf in West Asia for long. The scale of wars, which were more than skirmishes of the day, ranged from

Trump’s tariff ploy sparks resistance from Global South

In the history of BRICS, never has any joint statement issued after a leader-level summit contained any remarks—directly or indirectly, against the US. However, for the first time, during the 17th summit of BRICS in Rio de Janeiro in Brazil, leaders voiced their concern about America’s impositi

How India can become a $30 tn economy by 2047: A blueprint

Viksit Bharat: India @2047  By Aditya Pittie Fingerprint Publishing This timely and meticulously

The saga of a language family that has shaped the world

Proto: How One Ancient Language Went Global By Laura Spinney Distributed in India by HarperCollins India, 352 pages, Rs 599

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter