Narendra Modi, on Saturday launched the India Post Payments Bank (IPPB) at Talkatora Stadium in New Delhi. The bank aims to to leverage the expansive network of the postal department to ensure financial inclusion for the masses.
The bank in which the government owns 100 percent equity aims to leverage the vast network of the Department of Posts (DoP) that has over three lakh postmen and Grameen Dak Sewaks. IPPB will have 650 branches and 3250 Access Points across the country.
The government aims to link 1.55 lakh post offices in the country to the IPPB system by December 31, 2018. A wide range of products such as savings and current accounts, money transfer, direct benefit transfers, bill and utility payments, and enterprise and merchant payments will be offered at IPPB.
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.
The cabinet has already given nod to 80 percent hike in spending for this payments bank to Rs 1,435 crore. The new bank is expected 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 400 crore) and human resource expenses (Rs 235 crore), a government statement had said.>