All the 1.55 lakh post offices in the country would be linked to the India Post Payments Bank (IPPB) system by December 31, 2018, Communications Minister Manoj Sinha said on Wednesday.
The India Post Payments Bank is scheduled to be launched nation-wide on September 1.
Envisaged to achieve financial inclusion objectives, IPPB will be a bank for the common man which will push PM @narendramodi ji's vision of taking benefits of a developing India to the remotest village. #IndiaPostPaymentsBankhttps://t.co/c9KeZrqgL3
— Vijay Goel (@VijayGoelBJP) August 31, 2018
“On the day of the launch, IPPB would have 650 branches and 3,250 access points spread across the country,” the minister told reporters.
By the end of 2018, the number of access points would increase to 1.55 lakh, of which 1.30 lakh branches would be in rural areas, Sinha said.
Further, account holders of the Post Office Savings Bank would also be able to avail IPPB services by linking their accounts, he added.
The account holders in the payments bank would be provided a QR card and they can authorise transactions with the card and their biometrics, he added.
Meanwhile, the Union cabinet on Wednesday approved for revision of the project outlay for setting up of the payments bank from Rs. 800 crore to Rs. 1,435 crore.
The additional sum of Rs. 635 crore is on account of Rs. 400 crore for technology costs and Rs. 235 crore for human resource costs, according to an official statement.
The bank would provide services such as current account, savings account, remittances, money transfer, direct benefit transfer, enterprise and merchant payment, the minister informed, adding that the services would be available through multiple channels including counter services, micro ATM, mobile banking applications, SMS and IVR (Interactive Voice Response).
PM Sri @narendramodi to launch India Post Payments Bank IPPB, Accessible, Affordable and the Trusted Bank for the Common Man on Saturday, 1st September 2018. A great step for accessibility to financial inclusion of the marginalised..
— Shobha Karandlaje (@ShobhaBJP) August 31, 2018
What is India Post Payments Bank?
The India Post Payments Bank (IPPB) to be inaugurated on the 1st of September 2018 has been incorporated as a public sector company under the Department of Posts with 100% GOI equity and is governed by the Reserve Bank of India. 650 branches of the bank along with 3250 customer access points are operational across the country from September, 2018.
IPPB is offering demand deposits such as savings and current accounts up to a balance of Rs 1 Lac, digitally enabled payments and remittance services of all kinds between entities and individuals and also provide access to third-party financial services such as insurance, mutual funds, pension, credit products, forex, and more, in partnership with insurance companies, mutual fund houses, pension providers, banks, international money transfer organisations, direct benefit transfer, etc.
Even before the schedule nationwide launch of #IndiaPostPaymentsBank account by Prime Minister, the postal banking facility is getting popular. However, the facility is facing some technical glitches due to the low-speed internet in the rural areas.@narendramodi #TamilNadu pic.twitter.com/Hbgvni5lFs
— Jose K Joseph (@josereports) August 31, 2018
Role in financial inclusion
India Post has about 1,54,000 post offices, of them 90% are in rural areas. There is one post office for every 7176 people in India. India Post also has 2,96,000 agents in the rural area. About 2.2 crore people, already receive their National Rural Employment Guarantee Act (NREGA) payments by post offices After State Bank of India, India Post has the largest deposits valued at ₹6 lakh crore.
T. S. R. Subramanian has said that it could aid in the ongoing Pradhan Mantri Jan Dhan Yojana financial inclusion plan.
Prime Minister #NarendraModi on Saturday will launch the #IndiaPostPaymentsBank (IPPB) that seeks to leverage the expansive network of the postal department to ensure financial inclusion for the masses. https://t.co/PfRJR09wnW
— Deccan Herald (@DeccanHerald) August 31, 2018