PM Modi to inaugurate India Post Payments Bank tomorrow
Prime Minister Narendra Modi will tomorrow launch the India Post Payments Bank (IPPB) that seeks to leverage the expansive network of the postal department to ensure financial inclusion for the masses. The event is scheduled to be held at Talkatora Stadium in New Delhi, along with simultaneous launch events at 650 branches and 3,250 access points that will go live tomorrow. Here's more.
"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," an official statement said. The payments bank, where the Indian Government holds 100% equity, will leverage the vast network of the Department of Posts (DoP) that has more than 3 lakh postmen and Grameen Dak Sewaks.
All the 1.55 lakh post offices will be linked to the IPPB system by December 31, 2018. 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).
Earlier this week, the cabinet had approved an 80% increase in spending for IPPB to Rs. 1,435cr, a move that will arm it with additional ammunition to compete aggressively with existing players like Airtel Payments Bank and Paytm Payments Bank. The revised cost estimate was on account of costs related to technology (Rs. 400cr) and human resource expenses (Rs. 235cr), a statement had said.