India Post Payments Bank — A boost to post office banking services

The Union Cabinet has given its approval for revision of the project outlay for setting up of India Post Payments Bank (IPPB) from Rs. 800 crore to Rs. 1,435 crore. India Post Payments Bank (IPPB) will be launched by the Prime Minister on 01-09-2018. IPPB has been envisioned as an accessible, affordable and trusted bank for the common man, to help speedily achieve the financial inclusion objectives of the Union Government. It will leverage the vast network of the Department of Posts, which covers every corner of the country with more than 300,000 Postmen and Grameen Dak Sewaks. IPPB will hence significantly augment the reach of the banking sector in India. The launch of IPPB marks another significant milestone in the Union Government’s endeavour to take the benefits of a rapidly developing India to the remotest corners of our country.

Details:

  • IPPB services shall be available at 650 IPPB branches and 3250 access points from 01-09-2018, spread across the country and in all 1.55 lakh post offices (Access Points) by 31-12-018.
  • The project will generate new employment opportunity for about 3500 skilled banking professionals and other entities engaged in propagating financial literacy across the country.
  • The objective of the project is to build the most accessible, affordable and trusted bank for the common man; spearhead the financial inclusion agenda by removing the barriers for the unbanked and reduce the opportunity cost for the under banked populace through assisted doorstep banking.
  • The project will supplement Government’s vision of “less cash” economy and at the same time promote both economic growth and financial inclusion.
  • The robust IT architecture of IPPB has been built taking into consideration bank grade performance, fraud and risk mitigation standards and in line with the best practices from payments & banking domain.

IPPB services:

The IPPB will provide bouquet of payments/financial services through its technology enabled solutions which will be distributed by the Department of Posts (DoP) employees/last mile agents transforming them from mail deliverer to harbinger of financial services. The  IPPB shall pay incentive/commission to the last mile agents (Postal Staff and Gramin Dak Sewaks) directly in their accounts for providing IPPB services so as to motivate them to promote IPPB digital services to the customers. A part of commission needs to be paid by IPPB to Department of Posts will be used for increasing the wherewithal of Post office.

IPPB will offer a range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments. These products, and related services, will be offered across multiple channels (counter services, micro-ATM, mobile banking app, SMS and IVR), using the bank’s state-of-the-art technology platform.

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